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La Française de l’Energie secures landmark EUR 40 million green bond for the development of its French and Belgium energy portfolio

27 September 2021

Pontpierre, France, September 27 th, 2021 – La Française de l’Énergie (Euronext: LFDE – ISIN:FR0013030152), an energy producer with a negative carbon footprint announces the issuance of its first green bond for the development of its energy portfolio in France and Belgium. This financing is provided by Edmond de Rothschild Asset Management (EDRAM), a leading energy and infrastructure investment manager.

A sizeable financing to cover LFDE’s funding needs and accelerate growth strategy

This green bond will fund the group’s existing energy portfolio, currently made of abandoned mine methane (AMM) and solar projects in Northern France and Wallonia, and can be expanded to other low carbon projects such as hydrogen. These projects are either under construction, in development stage, or in the group’s development pipeline as part of its growth strategy.

The financing amounts to EUR 40 million, consisting of a committed first tranche of EUR 25 million and an optional second tranche of EUR 15 million. The financing qualified as a “Green Bond” and the issuance has been assessed as compliant with the ICMA (International Capital market Association) Green Bond Principles via a second-party opinion by EthiFinance, a recognised independent expert.

The bond has an attractive 7-year bullet tenor thanks to LFDE’s track record in constructing and operating best-in-class assets with long term feed-in-tariffs and fixed price purchase agreements. The financing is provided at the LFDE International SARL level, the Luxembourg subsidiary of LFDE, with no recourse to the parent company La Francaise de l’Energie SA. The bond is therefore structurally subordinated to existing senior loans at the individual project level.

This bond enables La Francaise de l’Energie to commit sizeable financial resources to accelerate its development strategy without diluting the company’s equity in its assets: 49.5 MW of installed AMM capacity will therefore be deployed by December 31st 2022 and 3 million tons of CO2eq emission avoided annually thanks to the implementation of these projects. This new financing confirms the recognition of LFDE as a major player of the ecologic transition with key long-term financial partners like EDRAM, adding further high-quality green energy assets to EDRAM’s infrastructure debt portfolio.

A long-term partnership to reduce the carbon footprint of France and Belgium

“Our company’s first green bond issuance is a testimony of the group’s solid project development pipeline and high-quality assets. LFDE’s ambition and track record of success allow to secure competitive long-term financings, achieve economies of scale and join forces with leading debt investors such as Edmond de Rothschild Asset Management to accelerate our growth strategy and consolidate LFDE’s size and position as a negative carbon footprint energy producer”, welcomes Julien Moulin, Chairman of La Française de l’Energie.

“The size and tenor of this landmark deal highlight our group’s efficient financing strategy. The achievement in raising our first green bond for a multi-technology portfolio of low-carbon assets across two geographies truly sets La Française de l’Energie apart in its market”, specifies Aurelie Tan, Chief Financial Officer of La Française de l’Energie.

Jean-Francis Dusch, CEO of Edmond de Rothschild UK, CIO of Benjamin de Rothschild Infrastructure Debt Generation (BRIDGE) and Global Head of Infrastructure, Real Assets & Structured Finance explains: “This investment is an excellent addition to our infrastructure debt portfolio. Given the drive for decarbonisation in developed markets and the conviction-based investment strategy of EDRAM, recoverable energy is an important investment theme for us, and La Française de l’Energie successful track record of developing green assets make this a highly attractive energy transition financing.”

La Française de l’Energie was advised by Aurel BGC as Placement Agent and LPA-CGR as legal counsel. EDRAM was advised by BENTAM as legal counsel.

La Française de l’Energie confirms its objective of achieving annualized revenue of € 35 million and an EBITDA margin of over 45% by the end of 2022.

Next announcement:
October 21st, 2021 – 2021 Annual Results

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Climate change is an undeniable reality. We can already see its serious consequences for our planet. It is now urgent to act.

At FDE, we refuse to participate in initiatives that generate pollution beyond our borders, even if they reduce the carbon footprint of our local territories. Whether it is a question of carbon footprint or pollution, there are no limits.

It is our duty to build sustainable energy solutions that move towards global carbon neutrality. Today, the most resilient and sustainable energy solution is even more self-evident: it is imperative that energy remains local, within short supply chains, as close as possible to the needs of local communities and consumers.

Considering these, at FDE, we are taking actions and offering tailor-made, local multi-energy solutions.

By making the most of local resources, our offer enables us to provide territories with energies with a triple benefit: reduced carbon footprint, economically competitive and contributing to the socio-economic development of the area. We choose abandoned sites, make the most of the potential of local suppliers and service providers, and participate in a local center of expertise that involves universities, local authorities and associations in the local energy project.

FDE lacks neither the resources nor the know-how to deploy tailor-made energy solutions for everyone and for the planet.

Our engineers embrace the energy transition with a pragmatic view.

Recovering abandoned mine gas avoids fatal gas emissions into the atmosphere, while local coal gas reduces the need to import much more carbon-intensive gases. Abundant solar energy is both local and renewable.

To support the energy transition, at FDE, we are constantly innovating, looking for new solutions for the future, such as hydrogen, a decarbonized energy, or CO2 sequestration in coal.

In addition, all energy produced by our Group is designed to be more virtuous. All these processes therefore make FDE the only French energy producer with a negative carbon footprint.

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FDE wishes to promote the following HSE principles:

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Antoine FORCINAL
Directeur Général,