AXA has announced the successful placement of €1bn of subordinated green bonds due 2041.
The bonds will be issued under AXA Group’s newly established Sustainability Bond Framework. The initial fixed coupon has been set at 1.375% per annum until the end of the 6-month call window period (October 2031), when it will become a floating coupon based on 3-month EURIBOR plus a margin including a 100 basis points step up.
The bonds will be treated as capital from a regulatory and rating agencies’ perspective within applicable limits. The transaction has been structured for the bonds to be eligible as Tier 2 capital under Solvency II.
In 2019, AXA launched a new phase of its climate strategy and doubled its green investment target to €24bn by 2023. With this issuance, the group has further increased this target by €1bn to €25bn.