Allen & Overy advises on AXA’s first EUR1 billion subordinated green bonds
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Allen & Overy advised a bank consortium on AXA’s issue of subordinated green bonds for a total amount of EUR1 billion. The consortium consists of BNP Paribas, Crédit Agricole Corporate and Investment Bank as Global Coordinators, Green Structuring Advisors and Joint Lead Managers, as well as Citigroup, HSBC, NATIXIS and Société Générale Corporate & Investment Banking as Joint Lead Managers.
This is AXA’s inaugural green subordinated bond issuance targetting institutional investors and maturing in 2041. The initial fixed coupon has been set at 1.375% per annum until the first call date (October 2031), thereafter it will bear interest at a floating rate.
In 2019, AXA launched a new phase of its climate strategy and doubled its green investment target to EUR24 billion by 2023. With this issuance, the Group further increases this target by EUR1 billion to EUR25 billion.
Investor demand was strong with more than 100 institutional investors participating, including asset managers, insurers and pension funds across Europe.
The transaction is structured for the bonds to be eligible as Tier 2 capital under Solvency II.The bonds, issued on 7 April , 2021, are admitted to trading on the Luxembourg Stock Exchange’s regulated market.
This transaction involved lawyers from Allen & Overy’s Paris and London offices, with a cross-border team led by ICM partner Hervé Ekué, of Counsel Dan Lauder and senior associate Luke Thorne, supported by associate Laure Bellenger.