Orange has successfully issued today a €500m inaugural Sustainability Bond
09 Setembro 2020 - 1:03PM
Orange has successfully issued today a €500m inaugural
Sustainability Bond
Press release Paris, 9 September 2020
Orange has successfully issued today a €500m inaugural
Sustainability Bond, supporting its social and environmental
commitments
Orange today announced the successful launch of
its inaugural Sustainability Bond for a total amount of EUR 500
million to finance projects that fully reflect the Group’s
ambitions in both the green and social fields.
The Group presented in December 2019 its new
5-year strategic plan called Engage 2025, stating that its operator
model will be reinvented and aligned with two strong commitments:
the first towards digital and social inclusion, and the second
towards the fight against climate change. These commitments fully
reflect the purpose which Orange recently added to its bylaws: “As
a trusted partner, Orange gives everyone the keys to a responsible
digital world”.
For this first issuance, Orange intends to
allocate a c.40% of the funds raised into digital and social
inclusion projects and c.60% of the funds to energy efficiency and
circular economy projects.
Ramon Fernandez, Deputy CEO and Executive
Director Finance, Performance and Development, said: “This
transaction illustrates Orange’s strong commitment towards social
and environmental responsibility. I am very proud that Orange
enters the sustainability bonds market and that our inaugural issue
has attracted significant interest from socially responsible
investors. As the Covid-19 crisis highlighted the essential nature
of telecommunications, we feel necessary to drive our business with
the objective to contribute to a more sustainable and fair
world”.
Elizabeth Tchoungui, Excecutive Director CSR,
Diversity and Philanthropy added: “I am so delighted to have joined
Orange and to be involved in this significant medium to support our
commitment towards digital and social inclusion, as well as
environment. We aim to mobilize all of our stakeholders around our
sustainable and collective objectives stated in our Engage 2025
strategic plan”.
The bond issue consists of a total nominal of
€500 million, with a maturity of 9 years and an annual coupon of
0.125%. This issue, which was more than 5 times oversubscribed, was
met with great success from French and international SRI investors,
allowing Orange to broaden its investor base and continue its
policy of optimising its funding structure.
See below for the bond characteristics:
Currency |
Format |
Term |
Notional |
Coupon |
Re-offer spread |
EUR |
Fixed rate |
9 years |
500 million |
0.125% |
m/s+ 45bps |
Vigeo Eiris, a leading ESG rating agency, has
reviewed our sustainability financing framework and delivered its
highest level of assurance on Orange’s commitments and on the
contribution of the contemplated Bonds to sustainability. The
projects selected and the allocation process will be overseen by
Orange’s Sustainability Financing Committee. Allocation of the
proceeds will be annually audited until completed and yearly update
on the impacts of investments will be provided to investors.The
documentation related to this bond issuance is available on our
website, under the “Debt and Rating” section.
Crédit Agricole CIB and ING are acting as Global
Coordinators and Structuring Advisors.BBVA, Crédit Agricole CIB,
Crédit Suisse, HSBC, ING, Natixis are acting as Bookrunners.
About Orange
Orange is one of the world’s leading telecommunications
operators with sales of 42 billion euros in 2019 and 143,000
employees worldwide at 30 June 2020, including 84,000 employees in
France. The Group has a total customer base of 253 million
customers worldwide at 30 June 2020, including 208 million mobile
customers and 21million fixed broadband customers. The Group is
present in 26 countries. Orange is also a leading provider of
global IT and telecommunication services to multinational
companies, under the brand Orange Business Services. In December
2019, the Group presented its new "Engage 2025" strategic plan,
which, guided by social and environmental accountability, aims to
reinvent its operator model. While accelerating in growth areas and
placing data and AI at the heart of its innovation model, the Group
will be an attractive and responsible employer, adapted to emerging
professions.
Orange is listed on Euronext Paris (symbol ORA) and on the New
York Stock Exchange (symbol ORAN).For more information on the
internet and on your mobile: www.orange.com,
www.orange-business.com or to follow us on Twitter:
@orangegrouppr.Orange and any other Orange product or service names
included in this material are trademarks of Orange or Orange Brand
Services Limited.
Press contact Olivier Emberger;
olivier.emberger@orange.com 01 44 44 93 93
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