France has issued its first "green bonds" with a record seven billion euro ($7.5 billion) sale, paving the way for the establishment of a genuine market in renewable energy bonds. Proceeds from Tuesday's sale of the 22-year bonds will be used to finance projects to address climate change.
Credit Agricole-CIB, which was one of the banks handling placement of the bonds with institutional investors, said it was a "historic" event for the green bonds market because of the size and long maturity of the loan.
The move demonstrates France has "a credible and robust framework to implement the Paris Agreement (on climate change)," Environment Minister Segolene Royal said.
The bonds' coupon was set at 1.75 percent, an interest rate comparable to conventional borrowing on the same timeframe.