SNCF RESEAU (EPA:RFAD) - SNCF Réseau - Press release

Transparency directive : regulatory news

12/07/2017 16:15

PRESS RELEASE

PARIS, 12th JULY 2017

SNCF Réseau launches the longest Green Bond ever issued in Euro

SNCF Réseau, manager of the French railway infrastructure, rated Aa2 (Moody's)
/ AA (S&P) / AA (Fitch), successfully issued today a new Green Bond for EUR750M
on a remarkable 30-year maturity. This is the longest Green transaction ever
issued in Euro.

In line with its commitment to become a reference issuer in the Green Bond
market, SNCF Réseau issued its 3rd bond issue in Green format in less than a
year, for a total of EUR2.65bn making the issuer one of the world's 15 largest
Green Bond issuers(1).

Renewed support from investors

"This transaction, on a remarkable 30y tenor, proves the trust investors have
in the SNCF Réseau signature, in the quality of our assets and our industrial
strategy focused on renovation of the structuring network'' announces Patrick
Jeantet, CEO of SNCF Réseau. "SNCF Réseau, in offering a true liquidity to
investors, now becomes one of the world's Green Bond reference issuer."

Investors showed a strong appetite for this new transaction, the orderbook
closing in excess of EUR900M. In particular, some of the most valuable Socially
and Responsible Investors (SRI) participated to this trade of which AXA,
Blackrock, Zurich Insurance Group and APG (acting on behalf of Dutch pension
funds ABP, bpfBOUW, SPW and PPF APG).

A demanding methodology

In order to define top grade standards for Green funding, and evaluate the
environmental impact of railway projects, SNCF has developed, in collaboration
with Carbone 4, a specific methodology that measures the impact of its policy
for the renovation of the rail network in terms of the GHG emissions.

This methodology will be published and widely communicated at the time of the
release of its annual Green Bond reporting expected end of September 2017.

(1) Excluding China onshore

A point of reference in the Green Bond market

Granted both the Green Bond Principles certification by the Extra-financial
rating agency Oekom Research, and the Climate Bond Initiative certification,
SNCF Réseau is one of rare issuers in the world to benefit from this double
certification.

Moreover the issuer is now member of Finance for tomorrow initiative launched
by Paris Europlace.

For this new issue, SNCF Réseau has mandated Crédit Agricole CIB, Goldman
Sachs International, Natixis and Société Générale CIB as co-lead managers.

All the documentation related to this Green Bond program (Green Bond Framework,
Second Party Opinion, Climate Bond Initiative certification, Green Bond
Investor Presentation, etc.) is available on the SNCF Network website:
http://www.sncf-reseau.fr/fr/finance-durable.

Transaction summary :

Issuer :             SNCF Réseau
Rating :             Aa2 (Moody's) / AA (S&P) / AA (Fitch)
Order book :         in excess of EUR 900 millions
Amount allocated :   EUR 750 millions
Issuance date :      11 July 2017
Settlement date :    20 July 2017
Maturity date :      20 December 2047
Price / Yield :      98,921% / 2,300%
Coupon :             2,250% annual
Spread :             OATs+37bp

Contacts :

Edouard Ameil, Communication Director
edouard.ameil@reseau.sncf.fr
+33 6 13 31 64 51

Guillaume Hintzy, Director Financing & Treasury
guillaume.hintzy@reseau.sncf.fr
+33 1 71 92 60 40

Bernard Torrin, Director Environment and Sustainable Development
bernard.torrin@reseau.sncf.fr
+33 1 71 92 60 14

About SNCF Réseau
Within SNCF Group, one of the world's leading mobility and logistics groups,
SNCF Réseau manages, maintains, develops and sells access to the French rail
network. It guarantees the safety and performance of more than 30,000 km of
track, including 2,600 dedicated to high-speed rail. It guarantees the access
to the network and services infrastructures in full transparency and non
segregating conditions to its 38 clients: 26 railway corporates use the network
and 12 other corporates, called authorized candidates (combined transportation
operators, ports, etc.), order furrows they place to railway corporate of their
choice. Second French public investor, couting 55 000 employees for 6.4bn EUR
revenues in 2016.

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