BNP Paribas begleitet ersten Sustainability Linked Convertible Bond

17 November 2020

BNP Paribas war Sole Sustainability Structuring Advisor beim ersten Sustainability Linked Convertible Bond von Schneider Electric.

Weitere Informationen zur Transaktion und unten (auf Englisch):

BNP Paribas sole Sustainability Structuring Advisor to Schneider Electric in first ever sustainability linked convertible bond

BNP Paribas announced today they are sole Sustainability Structuring Advisor and advised Schneider Electric in putting in place a Sustainability-Linked Financing Framework in line with the Sustainability-Linked Bond Principles 2020 administered by ICMA. Pre-issuance, Vigeo Eiris provided a Second Party Opinion on the Framework

 Key Facts and figures:

  1. Issue size: c. €650m
  2. Maturity: 15-Jun-26 (5.6 years)
  3. Coupon: Zero coupon
  4. YTM: (1.58)%-(1.09)%
  5. Conversion premium: 45%-50%

Key points

  • With this Sustainability-Linked Convertible Bond transaction, Schneider Electric will be the first ever issuer to issue convertible bonds linked to the achievement of sustainable objectives. There has been precedents of such Sustainability-linked transactions in the bond market (such as Enel, Suzano, Chanel), but not in the convertible bond market yet.
  • For the purpose of this transaction, the Company has chosen the following three indicators (KPIs) and associated objectives  (verified by EY & Associés, as part of the SSI):
    1. Deliver 800 megatons saved and avoided CO2 emission for its customers by 2025
    2. Increase gender diversity from hiring to front-line managers and leadership teams: 50% women hiring, 40% front-line managers, 30% women in leadership teams by 2025
    3. Train 1 million underprivileged people in energy management by 2025
  • These indicators are tracked under Schneider’s tool to address its sustainability challenges and to improve each pillars of its strategy, called the Schneider Sustainability Impact (SSI).
  • Schneider Electric is providing energy and digital solutions for energy efficiency and sustainability, and has made strong commitments for its entire ecosystem: ranging from helping its suppliers improve their sustainability practices, to reducing its customers’ emissions through innovative solutions, as well as deploying an ambitious action plan for its own operational scope. The Company has the ambition to achieve net-zero operational emissions and reduce scope 3 emissions by 35% by 2030 (vs 2017) as part of its validated 1.5°C Science-Based Target