On 30 June 2021, Carrefour completed the annual update of its EMTN programme, in which it decided to include the option to issue Sustainability-Linked Bonds (“SLBs”). These SLBs include Sustainability Performance Targets (“SPTs”) that are aligned with the Carrefour Group’s sustainability goals.
SLBs are debt instruments whose financial characteristics can vary depending on whether the issuer achieves predefined Sustainability/Environmental, Social and Corporate Governance objectives. To that end, Carrefour has selected three Key Performance Indicators that are core, relevant, and material to its business and measure progress against its sustainability commitments:
- Group Greenhouse Gas Emissions reduction,
- Quantity of packaging avoided, and
- Food waste.
Clifford Chance’s Debt Capital Markets team in Paris advised Carrefour on the inclusion of this innovative option in its EMTN programme (first CAC 40 issuer). The advice involved legal and regulatory matters regarding the disclosure provided to potential bond investors, drafting the detailed characteristics of the instruments and working closely with Carrefour’s treasury, in-house legal and ESG teams.
The Clifford Chance team consisted of Cédric Burford, partner, Auriane Bijon, counsel, and Jessica Hadid, associate.
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