Herbert Smith Freehills Kramer advised Alstom on its first €700 million issuance of perpetual, super-subordinated (“hybrid”) European green bonds, under its €1.5 billion Euro Medium Term Notes (EMTN) program.
This transaction marks a significant milestone for Alstom, making it one of the first industrial issuers to utilize the new European regulatory framework for European Green Bonds (“EuGB”). The transaction demonstrates the Group’s commitment to sustainable finance and accelerating the transition to low-carbon mobility.
The bonds are subordinated senior perpetual securities and benefit from 50% equity treatment by Moody’s, thereby strengthening the Group’s financial structure while maintaining its investment-grade rating.
The issuance was met with strong interest from international investors and was significantly oversubscribed, reflecting market interest in sustainable financing instruments and confidence in Alstom’s credit profile. The transaction further broadened and diversified the Group’s investor base.
In accordance with the European Green Bond Regulation, an amount equivalent to the proceeds of the issuance will be allocated to the financing or refinancing of eligible assets and expenditures contributing to the decarbonization of transport and the development of sustainable mobility solutions.
Herbert Smith Freehills Kramer acted as legal counsel on all aspects of the transaction. The team consisted of Louis de Longeaux (Partner), Dylan Shields (Attorney), and Jade Porret (Attorney).
Allen & Overy Shearman advised the arrangers with a team comprising Julien Sébastien (Partner), Lorraine Miramond (Counsel), Anthony Yeung Shun Fun, and Henri Fang (Attorneys).
