Insurance company AXA announced the launch of its inaugural green bond offering, successfully placing €1 billion of subordinated green bonds due 2041.
The new bonds are being issued under AXA’s recently released Sustainability Bond Framework, which outlines eligible areas for use of proceeds. According to the framework, eligible categories for funds from the offering may be used to finance Green Buildings, Renewable Energy, Clean Transportation, Energy Efficiency and Natural Resources / Sustainable Forestry.
The company noted strong demand for the bonds, with more than 100 institutional investors participating, mainly asset managers, insurers and pension funds essentially across Europe.
Alban de Mailly Nesle, Chief Risk and Investment Officer at AXA, said:
“AXA was among the first companies in the finance industry to adopt an ambitious climate strategy and we are committed to accelerate our actions towards a low-carbon economy. With the recent publication of AXA’s Sustainability Bond Framework and with the issuance of our first green bond, we continue with our peers to set new standards for climate finance and to contribute to the ongoing growth of this asset class.”