ORPEA

Success for the First Sustainable Bond Issue (“Green & Social”): €500 Million, 7-Year Maturity, 2.00% Coupon

Regulatory News:

On 25 March 2021, ORPEA (Paris:ORP) carried out its first public offering of sustainable bonds (“Green & Social”), dedicated to financing assets and / or projects with an environmental or social impact. These public bonds, amounting €500 million, have a maturity of seven years and a fixed coupon of 2.00%. This transaction has proved extremely successful among many international investors (more than 130 investors spanning 10 different nationalities), being oversubscribed more than twice, with an order book exceeding €1 billion.

As a key player in long-term care, ORPEA has always placed social and environmental issues firmly at the heart of its strategy and investment decisions. ORPEA intends to allocate the net proceeds of this issue to the financing of eligible green and / or social assets or projects, both existing and future ones, as detailed in the framework document, “Sustainable Financing Framework”.

The proceeds from the issue will be allocated via a selection process consisting of three stages (identification, evaluation and validation), in compliance with technical eligibility criteria. Monitoring and regular reporting will be carried out on the actual allocation to measure the social and environmental impact of its underlying projects, under the responsibility of a committee bringing together the Finance, ESG, Quality & Medical and Construction & Maintenance departments.

The framework document (“Sustainable Financing Framework”), which defines the link between this financing and ORPEA’s development projects, has been reviewed by an independent expert (ISS ESG), which has ensured that the transaction is aligned with the Green Bond Principles (2020), Social Bond Principles (2018) and Sustainability Bond Guidelines (2018), as defined by the International Capital Market Association.

The framework as well as the independent assessment performed by ISS ESG are available on ORPEA’s website: https://www.orpea-corp.com/en/publications/financial-operations

Yves Le Masne, Chief Executive Officer of the ORPEA Group, commented:
“First, I would like to thank all the investors, both existing and new ones, that have taken part in ORPEA’s first green and social bond issue. The success of this issue demonstrates the strength of the ORPEA model, in particular through the health crisis, and the Group’s environmental and social commitments. Indeed, the proceeds from this issue will finance, at an attractive rate, facilities meeting the highest environmental standards, and further support the development of a specialized long-term care offering to respond to the demographic and public health challenges faced around the world.”