Global insurer AXA has successfully placed €1 billion of subordinated green bonds, which will be issued under AXA Group’s newly established Sustainability Bond Framework.
This first green subordinated bond issuance to institutional investors is due 2041 and the initial fixed coupon has been set at 1.375% per annum.
AXA reported that investor demand was strong with more than 100 institutional investors participating, mainly asset managers, insurers and pension funds across Europe.
With this issuance, AXA has further increased its green investment target to €25 billion by 2023.
“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,” said Alban de Mailly Nesle, Chief Risk and Investment Officer of AXA.
“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.”
The bonds are expected to be rated BBB+/Stable by Standard & Poor’s, A3(hyb)/Stable by Moody’s and BBB/Stable by Fitch. Settlement of the bonds is expected to take place on April 7, 2021.
