Albioma : Albioma’s first Sustainability-Linked Euro PP issued for a total of 100 million euros at 7 and 8 years

Press releaseParis La Défense, 7 December 2020Albioma’s first Sustainability-Linked Euro PP issued for a total of 100 million euros at 7 and 8 yearsOn 7 December, Albioma announced the success of its first Sustainability-Linked Euro PP, for the significant sum of 100 million euros.This private placement comprises two tranches at 7 and 8 years, respectively, subscribed by leading institutional investors. The funds raised will be used to refinance the existing Euro PP and for the Group’s general financing needs over the medium term to support Albioma in carrying out its investment programme. This financing, exceeding the previous Euro PP set up by the Group in 2014 by 20 million euros and reaching maturity on 8 December 2020, bears witness to the company’s growth dynamic and the solidity of its fundamentals.By setting up this funding, Albioma is reinforcing its strategic commitment to the energy transition, which is one of the key pillars in its development strategy.The Group has sought to link part of the financial characteristics of its financing to meet a sustainable performance target measured with a key indicator, i.e. the share of energy production from renewable sources in the Group’s total energy production. Albioma has published a framework document1 in compliance with the principles laid down by the International Capital Market Association, the Sustainability-Linked Bond Principles, benefiting from a Second Party Opinion2.The Group’s ambition is to achieve a 95% to 100% share of renewable energy in its mix by 2030. In its financing, Albioma is committed to meeting the following targets in the evolution of its energy mix3, thanks to the conversion of all of the Group’s historic power plants in France’s Overseas Departments to 100% biomass (completely abandoning coal), in a movement that began in 2018, and the development of new renewable energy projects, notably in solar energy:–       over 80% renewable energy in 2023, in keeping with the earlier announcements;–       over 90% renewable energy in 2025.Depending on whether the targets are met, a margin adjustment mechanism (bonus/malus) that may reach up to 25 base points will produce a variation in the interest rate applying to the bonds.This is the largest investment by an independent renewable energy producer in the Euro PP market to date.Frédéric Moyne, CEO of Albioma, said, “The success of this issue, which is unprecedented for the Group, in this rocky context bears witness to the trust that investors have in a strategy aimed at achieving an energy mix with approximately 100% renewable energy by the year 2030, and in the credibility of our CSR policy. This sustainable Euro PP enables us to diversify our sources of financing and gives us greater visibility to carry out our investment programme in the coming years under excellent conditions.”The settlement/delivery date for this issue was today.The issue will be listed on the Euronext Access market.Natixis and Société Générale have worked with Albioma in carrying out this innovative operation.
1 Albioma has presented a “Sustainability-Linked Financing Framework”, available on the company website: www.albioma.com2 Vigeo Eiris has presented a Second Party Opinion available on the company website: www.albioma.com3 The commitment concerns fully consolidated companies. AttachmentAlbioma_CP_20201207_ENG


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