The second issuing of RATP Green bonds an outstanding success

The proceeds generated by this loan will be entirely dedicated to RATP’s financing of three major investment projects:

• The energy transition of the network of 4,700 buses operated by RATP in the Île-de-France region (conversion of the bus depots, renewal of the bus fleet), with the aim of commissioning a 100% eco-friendly bus fleet by 2025, serving 1 billion passengers yearly. The goal of this plan is to have a 50% reduction in greenhouse gas emissions generated by buses operating on the RATP network by this date.
• The restructuring of the Vaugirard workshop site, a wide-scale and innovative urban mixity project in Paris’s 15th arrondissement, seamlessly incorporating two industrial sites (train and equipment maintenance workshops), housing and green spaces. The renovation of the site will create a new neighbourhood structured around a new street, with 400 housing units, half of which will be social housing, and will include a 700 m2 area dedicated to urban agriculture and a 15,000 m2 green roof, the largest in Paris.
• The renewal of metro line 14’s rolling stock, with higher-capacity trains that are more modern and more fuel-efficient (-20% in electric energy consumption), in order to support the on-going line extensions to Mairie de St-Ouen and Orly Airport.

The goal of these projects is to meet the high-impact environmental objectives. The projects also highlight RATP’s priorities regarding CSR, namely to be a major player in sustainable mobility and smart cities, reduce its environmental footprint and confirm its social and societal responsibilities.

RATP was the first global multi-modal transport operator to be awarded “Engagé RSE confirmé” (CSR Commitment confirmed) (ISO 26000) AFNOR certification in 2018, through its recognised practices regarding Corporate Social Responsibility (CSR) within its Île-de-France historic perimeter. This label testifies to excellent performance, notably in terms of human resources practices, regional anchoring and sustainable production methods.

RATP is also the 1st global multi-modal transport operator to be ISO 50 001 certified in Île-de-France, an award granted to the company for its commitment to the continuous improvement of its energy performance. RATP has ambitious energy/climate goals, which are to reduce greenhouse gas emissions by 50% and energy consumption per passenger-kilometre by 20% between 2015 and 2025.

To meet these goals, an action plan has been implemented. It concerns rail and bus traction, railway infrastructure, train and metro stations, workshops and bus depots as well as tertiary sites.

The CSR policy, which is fully integrated in the Strategic plan, is a line of performance at the core of the business model and is based on dynamic and cross-cutting governance, at the highest level.

Terms of the transaction:

The issuing of the green bonds was jointly carried out by BNP Paribas, Crédit Agricole CIB, Natixis and Société Générale.

The transaction was announced in the afternoon on 12 June. It was met with very high demand, on the part of both French and international investors, which demonstrated the solid reputation and high appreciation of the credit standing of the issuer RATP, and the relevance of its sustainable development policy. The order book ultimately reached €2.6 billion euros on 13 June, equal to an exceptional osubscription rate (>5 times). This overwhelming success allowed for a reduction in the initial range to OAT +26 bps (+/1 bp), thus allowing RATP to set the price to OAT + 26 bps, representing a yield of 0.381%.