On 14 May 2024: EDF (BBB stable S&P / Baa1 stable Moody’s / BBB+ stable Fitch) successfully launched its first green commercial paper issuance. It was subscribed by Ecofi, a committed asset management company for a nominal amount of €50 million and a 6-month maturity.
The net proceeds will be used to refinance investments in renewables including hydropower, biodiversity preservation, electricity distribution and energy efficiency projects, as defined in the Green Financing Framework of EDF ([1]). These investments are aligned with the European taxonomy.
This makes EDF the first company to extend its Negotiable European Commercial Paper (NeuCP) programme to include green financing as defined in its Green Financing Framework ([2]). The overall envelope of this program has been maintained at its current level of €12 billion, and now comprises three compartments:
- financings defined by the Green Financing Framework dedicated to:
- renewable energy including hydroelectric, biodiversity conservation, electricity distribution and energy efficiency projects (€2 billion),
- investments in the existing nuclear reactors in France in relation to their lifetime extension (€2 billion),
- funding allocated to EDF's general corporate needs (€8 billion).
The green commercial papers included in EDF's Green Financing Framework ensure traceability of the use of funds, which is presented each year in a detailed report published in the URD and on the EDF website ([3]).
EDF is extending its green financing means together with bonds, repurchase agreement and bank loans, in line with its strategy and ambition to contribute to achieving carbon neutrality by 2050.
Ecofi is thus continuing to invest in companies working for the energy transition, with the ambition of having a positive impact on mankind and the planet.