📋 Tender Overview
Reference: 20220812
Release date: 17 June 2024
Promoter – Financial Intermediary
FRENCH ELECTRICITY
Location
France
Description
The operation concerns the purchase of publicly offered green bonds to finance the distribution network investments of Electricité de France (EDF), as indicated in EDF's green bond framework. In detail, this operation is a pilot product and an alternative instrument to a direct loan. The bond proceeds will be used to finance and refinance projects in line with the criteria of EIB's "Climate Action" and/or "Environmental Sustainability" objectives (CA&ES).
Objectives
The operation is in line with EIB's lending priority objectives on Energy (Renewable Energy, Competitive and Secure Energy) as well as the transversal objectives on Climate Action (mitigation). The aim is to support EU's and France's renewable energy and greenhouse gas emission reduction goals. EDF will use the bond proceeds to finance a combination of EIB-eligible and non-EIB-eligible projects such as investments in electricity distribution networks, district heating, renewable generation (including wind, solar, geothermal or hydropower projects), district heating, district heating/cooling distribution, production of heat and/or power from bioenergy or waste heat and electricity storage (including pumped storage) mainly in the EU and EFTA, with some projects located in the US and UK, while a few in other countries. Projects located outside of the EU/EFTA will not be considered for EIB eligibility. Nuclear power will be excluded from the issuance.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 500 million
Total cost (Approximate amount)
EUR 1000 million
Environmental aspects
This operation is intended to generate environmental benefits by supporting EU Taxonomy-aligned projects that help mitigate climate change. Most of the projects financed with the bond proceeds are expected to fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU, as amended by 2014/52/EU, requiring the competent authorities to determine whether an EIA is required. However, overhead transmission lines associated to the projects, or hydro power projects could fall under Annex I, requiring an EIA. The EIB will assess the capacity of EDF that the projects comply with the sector-relevant national and European environmental and biodiversity regulations based mostly on publicly available information. Environmental and social due diligence will focus on the capacity of the promoter to identify, assess, manage and monitor environmental, climate and social impacts and risks, and to ensure that underlying schemes comply with national and EU legislation as applicable, and with EIB Environmental and Social Standards (ESS) and relevant guidelines. This due diligence will be based on public and non-public information. In the project agreement, the EIB requires EDF to disc
