SNCF SA GREEN BOND

Promoteur – Intermédiaire Financier

SOCIETE NATIONALE SNCF SA

Lieu

• France

Description

The operation will finance SNCF SA green investments in its green bond framework.

Additionality and Impact

EIB's involvement in a bond issuance process through a significant investment is expected to expand the issuer's green investor base, and thereby diversify its funding sources.

The bond is expected to meet issuer demand for labelled green product, in the context of the development of Capital Market Union objectives and European regulatory standards, including CSRD and the EU Green Bond Standard.

The operation is expected to have a material signalling effect, as EIB's expertise and involvement in selected green bond inssuances is expected to have a significant value for other investors in a market where the quality of green frameworks differs widely from issuer to another. EIB's involvement and review of the issuer's green bond financing framework will be a form of quality stamp and is expected to be highly appealing to green investors.

The set of underlying projects to be supported by the issuance of SNCF SA green bonds and to be financed under this operation are expected to be primarily part of the 2021-2030 Performance contract between the French State and SNCF Réseau, the railway infrastructure manager, SNCF SA subsidiary, which aims at accelerating the railway network modernisation effort carried out by SNCF Réseau over the next decade. The use of the proceeds under the green bond framework are expected to be in line with national and EU climate and sustainable transport objectives, and compliant with EIB sector eligibilities, therefore, consistent with the EIB and EU Taxonomy rules on climate-friendly infrastructures (Climate Action).

The envisaged investments will increase the quality, availability and reliability of rail services on the high traffic links of the French railway network. It is expected to generate time and vehicle operating cost savings, reduce the maintenance costs of the infrastructure and improve railway safety. It is expected to contribute to the modal shift from road to rail and, thereby, present environmental and road safety benefits and contributing to the development of Sustainable Transport in line with EU Objectives.

Objectifs

The operation consists in the purchase of hybrid and/or senior green bonds issued by SNCF, the proceeds of which will primarily finance new or existing electric railway infrastructure investments and electric rolling stock.

Secteur(s)

• Transports - Transports et entreposage

Montant BEI envisagé (montant approximatif)

EUR 300 million

Coût total (montant approximatif)

EUR 600 million

Aspects environnementaux

Some of the projects underlying the operation might fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU, amending 2011/92/EU, requiring the competent authorities to determine whether an EIA is required. The EIB will assess the capacity of thepPromoter to ensure the projects compliance 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. Due to the nature of capital market transactions, if this due diligence can only be based on publicly available information, and it is not possible to ensure compliance with EIB Environmental and Social Standards, the EIB will request the Board to derogate to those standards.

Passation des marchés

The EIB will require the promoter to ensure that contracts for implementation of the project have been tendered in accordance with the applicable EU procurement legislation, Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC] as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Statut

Signé - 3/09/2024