The AMF approves its first bond prospectus for European green bonds under the ‘EuGB’ standard
The AMF has approved a prospectus of Île-de-France Mobilités, enabling the first admission to trading on Euronext Paris of European green bonds under the EuGB standard and governed by French law. This issuance complies with the stipulations of the new European regulation which require the bond proceeds to be allocated to finance sustainable activities and complies with the enhanced transparency requirements.
From 21 December 2024, companies wishing to finance sustainable projects have been able to issue European Green Bonds (EuGBs) which provide investors with greater transparency as regards the use of proceeds than a traditional green bond.
This is the first prospectus approved for the admission to trading on Euronext Paris of EuGB bonds in France and one of the first in Europe.
In particular the European 'EuGB' regulation requires the proceeds of these bonds to be allocated to environmentally sustainable activities as defined by the European Taxonomy.
This new standard aims to strengthen the requirements regarding information to be communicated to investors both prior and following the issue with the publication of several documents setting out, in particular, the features of the assets financed and the allocation of funds to these assets through an annual report. The compliance of the bonds issued with the criteria of the regulation is certified by an external auditor before the issue, and supplemented by a post-issuance review of the proceeds allocation and a report reflecting the environmental impact of the assets financed.
This inaugural transaction is further proof of the attractiveness of the Paris financial market for sustainable finance. The AMF is working alongside issuers to help them implement this new standard and has recently published a dossier setting out the obligations arising from this new framework.
I am delighted that the AMF has approved this inaugural issue of green bonds bearing the European ‘EU Green Bonds’ label. This transaction demonstrates the expertise of the Paris financial centre and its regulator in the field of sustainable finance. The AMF will continue to work closely with issuers to help them adopt this innovative new standard.
About the l’AMF
The AMF is an independent public authority responsible for ensuring that savings invested in financial products are protected and that investors are provided with adequate information. The AMF also supervises the orderly operations of markets. Visit our website https://www.amf-france.org/en
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