Linklaters has advised the European Investment Bank and the Caisse des Dépôts et Consignations on the setting up of an investment platform to finance the energy transition of bus fleets across France. Endowed with a €100 million investment from each of the two institutions, the “Clean Buses” Platform, managed by the Banque des Territoires of the Caisse des Dépôts et Consignations, will offer innovative financing to local and urban mobility authorities looking to green their bus fleets and reduce their climate impact.
This innovative financing solution will take the form of contingent bonds. This instrument finances up to 100 % of the eligible projects’ costs (purchase cost of buses and associated charging infrastructures) and offers beneficiaries a capped interest rate that fluctuates inversely with changes in electricity prices. This will enable beneficiaries to fully or partially mitigate the risk associated with changes in electricity prices on electric bus energy charges, which is key to the overall economic viability of greening a bus fleet.
The “Clean Buses” Platform is the result of the cooperation between the European Investment Bank and the Caisse des Dépôts et Consignations, which began in 2013. The European Investment Bank funds will be guaranteed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe. This initiative reaffirms the commitment of the Banque des Territoires of the Caisse des Dépôts et Consignations and the European Investment Bank to the “European Green Deal”, which aims to make the European Union the first greenhouse gas-neutral economy by 2050.
The Linklaters teams in Paris were led by Bertrand Andriani, Partner head of the Banking – Energy & Infrastructure practices. Cyril Boussion and Pierre Guillot, Partners, oversaw the tax and public law aspects, respectively. They were assisted by Vincent Poilleux, Managing Associate, on the structured finance aspects, by Clément Moine, Managing Associate, on the capital markets aspects and by Mehdi Boumedine, Managing Associate, and Margaux Sartre, Associate, on the corporate aspects.
