MNI: France Says Any Green Linkers Within EUR15 Bln Limit

Any green bond issuance by France this year would remain within the EUR15 billion total authorised amount for green expenditures, a Treasury spokesperson told MNI, adding that a potential green linker would attract investors from both the green and inflation-linked spaces.

“An inflation-linked green bond would add a ‘green dot’ on one of our two real-rate curves (as we issue OATs indexed to both French and euro-area inflations) and be part of our linker issuance,” the spokesperson said.

But asked whether there had been a decision on a potential 10-15-year green linker, the spokesperson said there was still no information as to any such issuance.

“Any green issuance (index-linked or not) would remain within the limit of the total amount of green eligible expenditures,” the spokesperson added, noting that this was EUR15 billion.

France’s target for 10% of its OAT issuance to be inflation-linked is only approximate and could vary according to market demand, the spokesperson said.

“AFT has an issuance policy based on investor demand which fluctuates,” the spokesperson said in written replies to questions.

"A green sovereign linker could expand investment opportunities for both green investors, in the inflation-linked space, and for linker investors, in the green space," the spokesperson said.