EDF GREEN BOND FRAMEWORK (GBPP)

Promoter – Financial Intermediary

ELECTRICITE DE FRANCE

Location

• France

Description

The operation concerns the purchase of publicly offered green bonds to finance the distribution network investments of Electricité de France (EDF), as indicated in EDF's green bond framework. In detail, this operation is a pilot product and an alternative instrument to a direct loan. The bond proceeds will be used to finance and refinance projects in line with the criteria of EIB's "Climate Action" and/or "Environmental Sustainability" objectives (CA&ES).

Objectives

The operation is in line with EIB's lending priority objectives on Energy (Renewable Energy, Competitive and Secure Energy) as well as the transversal objectives on Climate Action (mitigation). The aim is to support EU's and France's renewable energy and greenhouse gas emission reduction goals. EDF will use the bond proceeds to finance a combination of EIB-eligible and non-EIB-eligible projects such as investments in electricity distribution networks, district heating, renewable generation (including wind, solar, geothermal or hydropower projects), district heating, district heating/cooling distribution, production of heat and/or power from bioenergy or waste heat and electricity storage (including pumped storage) mainly in the EU and EFTA, with some projects located in the US and UK, while a few in other countries. Projects located outside of the EU/EFTA will not be considered for EIB eligibility. Nuclear power will be excluded from the issuance.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 500 million

Total cost (Approximate amount)

EUR 1000 million

Environmental aspects

This operation is intended to generate environmental benefits by supporting EU Taxonomy-aligned projects that help mitigate climate change. Most of the projects financed with the bond proceeds are expected to fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU, as amended by 2014/52/EU, requiring the competent authorities to determine whether an EIA is required. However, overhead transmission lines associated to the projects, or hydro power projects could fall under Annex I, requiring an EIA. The EIB will assess the capacity of EDF that the projects comply with the sector-relevant national and European environmental and biodiversity regulations based mostly on publicly available information. Environmental and social due diligence will focus on the capacity of the promoter to identify, assess, manage and monitor environmental, climate and social impacts and risks, and to ensure that underlying schemes comply with national and EU legislation as applicable, and with EIB Environmental and Social Standards (ESS) and relevant guidelines. This due diligence will be based on public and non-public information. In the project agreement, the EIB requires EDF to disclose Environmental and Social information for the ex-post review of compliance with EIB ESS for projects outside of the EU.

Procurement

The promoter has to ensure that contracts for implementation of the underlying eligible project will be tendered in accordance with the applicable EU procurement legislation, i.e. Directives 2014/23/EU, 2014/24/EU or 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as applicable and interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required. For projects located outside of the EU, the Bank will require the promoter to ensure that the EIB Guide to Procurement (GtP) is complied with. In the project agreement, the Bank will require the Promoter to disclose information supporting compliance with EIB GtP for projects outside of the EU.

Status

Signed - 7/06/2024