BNP Paribas joins forces with Banque des Territoires to create new European fund

Written by Dan McGrath

27/06/2023

BNP Paribas has announced the launch of a new fund, BNP Paribas European Impact Bonds Fund 2, and has joined forces with Banque des Territoires to create the fund.

The new fund, which is being launched three years after the first social impact bonds fund in France and the European Union (EU), has a target size of €70m, and aims to intensify the development of the impact bond market in the EU.

Banque des Territoires, which is part of Groupe Caisse des Dépôts, will join as a strategic investor, alongside the European Investment Fund (EIF) and BNP Paribas Cardiff, the group’s insurance subsidiary.

Managed by BNP Paribas Asset Management, the fund is set to finance projects that will have a positive impact on society or the environment, promoting innovation in public policy while generating savings in government budget.

A total 10 projects have been selected for funding, with the BNP Paribas European Impact Bonds Fund 2 helping more than 1,500 refugees. The fund will also help vulnerable young people and people with disabilities find lasting employment or take a training course to gain a qualification.

The scheme will also aim to avoid more than 16,000 tonnes of CO2 emissions and reuse more than 5,000 tonnes of waste.

Head of company engagement at BNP Paribas, Antonie Sire, said: “Impact bonds help accelerate the development of projects that make a genuine contribution to better inclusion of vulnerable populations and to preserving the environment. Since 2016, BNP Paribas has acted as both structurer and investor in impact bonds, and we are delighted to continue creating the right conditions for their development alongside committed and prominent investors. Impact bonds will play an increasingly important role in the coming years to support actions in favour of a fair transition.”

EIF’s deputy chief executive, Roger Havenith, added: “The EIF has been involved in the development of social impact bonds since 2015, first in the UK, then in Finland for the integration of refugees, in the Netherlands for the reinstatement of soldiers, and in France for the alternative to incarceration for homeless and mentally ill people.

“In keeping with its principles, the EIF has also supported several impact bond fund managers in France and Sweden, directly and indirectly investing a total of €75m in impact bonds. With the BNP Paribas European Impact Bonds Fund 2 and the support of the InvestEU programme, the EIF is confirming its aim of working towards a more sustainable market by supporting a team with expertise in the structuring and follow-up of impact bonds.”

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