Orange returns to the Sustainability Bond market with a new €500m transaction supporting its social and environmental commitments
12 May 2022 - 05:17PM
Orange returns to the Sustainability Bond market with a new €500m
transaction supporting its social and environmental commitments
Press releaseParis, 12 May 2022
On 11 May, Orange successfully launched and
priced a Sustainability Bond issue 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. As of today, Orange
has raised EUR 1bn of Sustainability Bonds in total, following the
inaugural EUR 500m transaction conducted in 2020.
As part of its strategic plan "Engage 2025", the
Group has undertaken commitments towards digital inclusion, social
inclusion, and the fight against climate change. More specifically,
Orange intends to allocate a c.50% of the funds raised into digital
and social inclusion projects and c.50% of the funds to energy
efficiency and circular economy projects.
The bond issue consists of a total nominal of
EUR 500 million, with a maturity of 10 years and an annual coupon
of 2.375%. This issue, which was more than 5 times oversubscribed,
was met with great interest from French and international ESG
investors, allowing Orange to broaden its investor base and
continue to proactively manage its funding structure.
See below for the bond characteristics:
Currency |
Format |
Term |
Notional |
Coupon |
Re-offer spread |
EUR |
Fixed rate |
10 years |
500 million |
2.375% |
m/s+ 60bps |
The proceeds of the Bonds will be managed
according to Orange’s Sustainability Financing Framework (September
2020) (Orange Sustainability Financing Framework - 2020 09) which
highlights the Group’s intention to be an active player of
sustainable finance and its broader commitment to mobilise all of
its stakeholders around this objective. The Framework is aligned
with ICMA’s 2018 Green Bond Principles (GBP), 2020 Social Bond
Principles (SBP) and 2018 Sustainability Bond Guidelines
(SBG). It also received a Second Party Opinion from Vigeo
Eiris, a leading ESG rating agency, who 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 and yearly update on the impacts of investments until full
allocation of the proceeds will be provided to investors. The
documentation related to this bond issuance is available on our
website, under the “Debt and Rating” section.
Barclays and Natixis are acting as Global
Coordinators.Goldman Sachs, HSBC, La Banque Postale, RBC are acting
as Active Bookrunners.
About Orange
Orange is one of the world’s leading telecommunications
operators with sales of 42.5 billion euros in 2021 and 137,000
employees worldwide at 31 March 2022, including 76,000 employees in
France. The Group has a total customer base of 278 million
customers worldwide at 31 March 2022, including 232 million mobile
customers and 24 million 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 contacts:
Tom Wright; tom.wright@orange.com; +33 6 78 91 35 11
CAUTION: NOT FOR DISTRIBUTION IN THE UNITED
STATES
This press release, of a purely informative
nature, is not and cannot in any way be construed as an offering to
sell any securities, or as a solicitation of any offer to buy
securities, in any jurisdiction, including the United States,
Japan, Australia, Canada and the United Kingdom. The securities
mentioned in this press release have not been and will not be
registered pursuant to the US Securities Act of 1933, as modified.
They cannot be offered or sold in the United States absent
registration or an exemption from registration. No public offer of
these securities has been or will be made in the United States or
elsewhere.
- PR_Orange_sustainable bond issue_052022
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