Highlights
- This operation is the first of its kind performed by the EIB in France.
- The funds raised will be used to finance projects related to production systems and new technologies in clean transport, renewable energy, energy efficiency, sustainable water and wastewater management, and circular economy.
- The EIB's participation as a leading investor should help attract long-term financing on the public debt markets for green investments.
The European Investment Bank (EIB) has invested 150 million in the inaugural 600 million green bond issue by automotive supplier Valeo.
A key feature of this operation is the establishment of a pioneering green and sustainability-linked financing framework the first of its kind covering reporting, governance and verification. Valeo implemented the framework to guarantee that the funds will only finance activities that align with the EU taxonomy of green and sustainable activities. These include projects related to production systems and to the introduction of new technologies in certain categories, including clean transportation, renewable energy, energy efficiency, sustainable water and wastewater management, and circular economy. So far, Valeo has identified a pipeline of around 2 billion euros of eligible projects. Examples include smart heat pumps, battery terminal management systems, electric motors, and compact and quiet front-end cooling modules.
Valeo has committed to achieving carbon neutrality by 2050 along its entire value chain, including suppliers, operating activities and the end use of products sold by the group (direct and indirect emissions: Scopes 1, 2 and 3 emissions). By 2030, Valeo's emissions will have decreased by 45% in absolute terms* compared with 2019. 2030 is a fast-approaching milestone on the path to carbon neutrality.
The new bond will enable Valeo to continue expanding its portfolio of technologies that promote low-carbon mobility, in particular its solutions for vehicle electrification a field in which the group is a world leader.
In March 2021 Valeo joined the new CAC 40 ESG index, which includes 40 companies that have demonstrated best practices from an environmental, social and governance (ESG) standpoint.
Valeo is regularly recognised for its comprehensive sustainable development/ESG approach.**
The EIB is a long-term partner of Valeo. Since 2020, the Bank has provided total funding of 750 million for investments in technologies designed to reduce carbon emissions and improve active vehicle safety.
These green bonds fully comply with the EIB's framework and eligibility criteria for climate action and environmental sustainability, and the financing offer complements its existing long-term bank loan offering.
A first for the EIB in France, this operation should help attract long-term financing on the public debt markets for green investments.
"We are very happy with the success of this inaugural green bond. It is an endorsement of the progress we have made in establishing our group as a leader in the development of electric vehicles in particular, and sustainable mobility in general. We are especially pleased that the EIB, which plays a key role in financing the European Union's climate goals, has been willing to support this transaction," said Valeo CEO Christophe Perillat.
EIB Vice-President Ambroise Fayolle commented, "I am delighted with this transaction, carried out with a long-standing partner of the Bank, which has made the green transition the priority for its investments. This first participation by the EIB as a leading investor in a senior green bond issue in France demonstrates the strong innovative capacity of our teams. A pioneer in the issuance of green bonds since 2007, the EU climate bank is proud to help attract more private sector financing for the energy transition by underwriting this green bond issue."
*Taking into account the positive impact (in terms of reducing CO2 emissions) of the electrification benefits of Valeo's solutions, also known as the "adjusted target".
**In reference to ESG ratings from extra-financial agencies, 2022 URD page 45.
Background information
About the European Investment Bank
The EIB is the EU's long-term financing institution, and its shareholders are the 27 Member States. It provides financing for quality investments that help Europe achieve its key objectives, such as the European Green Pact, which aims to make the European Union carbon neutral by 2050. As the EU climate bank, the EIB fosters the emergence and deployment of new technologies to overcome the challenges of the energy transition to a new, low-carbon growth model. In 2022, EIB investment in France in renewable energies, clean mobility and energy efficiency amounted to 5.9 billion, representing 70% of its financing.
About Valeo
As a technology company and partner to all automakers and new mobility players, Valeo is innovating to make mobility cleaner, safer and smarter. Valeo enjoys technological and industrial leadership in electrification, driving assistance systems, reinvention of the interior experience and lighting everywhere. These four areas, vital to the transformation of mobility, are the group's growth drivers.
Valeo in figures: 20 billion in sales in 2022 | 109 900 employees as of 31 December 2022 | 29 countries, 183 plants, 21 research centres, 44 development centres, 18 distribution platforms.
Valeo is listed on the Paris Stock Exchange.
Contact
Christophe Alix
c.alix@eib.org
+352 4379 - 84303
Press Office
press@eib.org
+352 4379 - 21000
