Proximus, Belgium’s leading telecommunications company, has achieved a significant milestone by successfully issuing a new 10-year green bond worth €750 million.
The bond issuance, aligned with Proximus’ commitment to sustainability under its bold2025 strategy, reinforces the company’s dedication to environmentally responsible financing.
Key Details of the Bond Transaction:
The bond transaction, priced on the 10th of November 2023, involves bonds with a coupon rate of 4.125 percent and a maturity date set for the 17th of November 2033. The settlement of the bonds is scheduled for the 17th of November 2023, with expectations for admission to trading on Euronext Brussels on or around the same day. Notably, the bonds are rated BBB+ by S&P and A2 by Moody’s, reflecting the company’s robust long-term credit ratings.
Financial Terms and Oversubscription:
The issuance garnered significant interest from investors, with the order book peaking at an impressive €3.3 billion, ultimately closing 3.6 times oversubscribed at final terms. The strong demand demonstrates the market’s confidence in Proximus and its commitment to sustainable financing. With the pre-hedging instrument implemented in February 2022, the effective fixed interest rate for Proximus on this 10-year bond transaction stands at 2.45 percent.
Institutional Investor Participation:
The green bond placement saw active participation from 112 European institutional investors, highlighting the broad support and trust Proximus enjoys within the investment community.
“We are delighted with the success of this new Green Bond issuance, enabling us to increase our average debt duration and to further diversify our credit investor base. It demonstrates the strong confidence of institutional investors in Proximus’ strategy, the proven robustness of our credit metrics, as well as our solid track record in sustainable finance,” Mark Reid, Finance Lead at Proximus, said in a news statement.
Alignment with Sustainability Goals:
Proximus’ green bond issuance is a strategic move in line with its bold2025 strategy, where sustainability is a pivotal pillar. The net proceeds from the bond will be channeled into financing, refinancing, and/or investing in projects outlined in Proximus’ Sustainable Finance Framework. Notable examples include the deployment of fiber and 5G technologies, emphasizing energy efficiency and circular economy principles.
Proximus’ Perspective:
The successful bond issuance signifies a crucial step in Proximus’ long-term funding plans and reinforces the company’s commitment to sustainable practices. The funds raised will contribute to projects that align with Proximus’ vision of a more sustainable and connected future.
As Proximus continues to prioritize sustainability, this green bond issuance not only supports its operational and strategic objectives but also underscores the telecommunications giant’s role in driving positive environmental impact within the industry.
