Telecom giant Orange announced the successful launch of the company’s inaugural sustainability bond, issuing €500 million to finance green and social projects. The offering was over 5x oversubscribed, driven by strong demand from French and international sustainable investors.
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.”
The bonds issued carry a maturity of 9 years and an annual coupon of 0.125%. Orange stated that it intends to allocate approximately 40% of the funds into digital and social inclusion projects, with the remaining 60% going towards energy efficiency and circular economy projects.
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.”
Orange stated that ESG rating agency Vigeo Eiris has reviewed the company’s sustainability financing framework and delivered its highest level of assurance on Orange’s commitments and on the contribution of the contemplated Bonds to sustainability.