Groupe BPCE ¥58.1 billion Samurai social impact bond first of its kind

By Wendy Van Sickle

Columbus, Ohio, June 22 – Groupe BPCE completed marketing of the first yen-denominated social impact bond on the Japanese market, with proceeds of the ¥58.1 billion issue earmarked for refinancing loans to clients of BPCE’s 15 Banque Populaire banks and 16 regional Caisses d’Epargne in the education, healthcare and social sectors, according to a news release.

BPCE said it is opening up the Samurai social impact bond market after the success of a euro-denominated green bond in December 2015. Samurais are yen-denominated bonds made by non-domestic issuers.

The issue is led by joint lead managers Daiwa, MUFG, Morgan Stanley, Mizuho, Natixis and SMBC Nikko.

Natixis and Mizuho advised the social-impact component of the issue, which proposes a preferred senior debt format with four tranches of five, seven, 10 and 15 years.

If conditions allow, BPCE said it plans to regularly return to the market for social impact, green and sustainable bonds, regardless of currency.

“Convinced that retail banks have a fundamental role to play in the financing of the energy transition and the socially-responsible economy and that their business is to finance clients and not just their projects, Groupe BPCE has decided to structure its issues in line with the nature of its clients, be they small caps, mid caps or public sector entities lacking direct access to the financial markets or project financing,” the release states.

The bonds are intended to refinance loans granted since Jan. 1, 2016 to clients of Groupe BPCE regional banks in the fields of education, healthcare and social endeavors.

“This approach affirms the role of cooperative retail banks, working at local and regional level, in the transformation of economies through energy transition and rural development. BPCE has also long been committed to Japanese investors and is particularly pleased to propose an investment opportunity to players in sustainable development in the French regions,” Olivier Irisson, chief financial officer of Groupe BPCE, said in the release.

The retail bank is based in Paris.

© 2015 Prospect News.
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