The issuance of a 500 million euro green bond by Air Liquide signals a transformative shift in the energy finance sector, underlining investor confidence in sustainable technologies. This issuance forms part of Air Liquide’s ADVANCE strategic plan, emphasizing the group’s dual aim of financial robustness and environmental responsibility.
With the allocated funds intended for pivotal energy transition projects, particularly focusing on low-carbon hydrogen, this move is a nuanced step toward addressing critical climate challenges. This is Air Liquide’s third green bond issuance, demonstrating consistent engagement in environmentally focused financing, following previous successes in 2021 and 2024 where funds were fully allocated to similar initiatives.
The bond issuance, executed under the Euro Medium Term Note (EMTN) program, highlights the tangible interest from investors, seeing substantial oversubscription. Achieving a fixed yield of 3.570% over a 10-year maturity and securing ratings of ‘A’ from Standard & Poor’s and Scope, and ‘A2’ from Moody’s, underscores the financial stability and credibility of Air Liquide’s ventures. The ratings suggest a stable investment grade, aligned with industry trends where financial assurance is paramount amid economic uncertainties. Jérôme Pelletan, Group Chief Financial Officer, cited the transaction as a testament to their strong market presence and capability to mobilize funds for capital-intensive energy transition projects, setting records in investment decisions in 2024.
Air Liquide’s significant investment in low-carbon hydrogen is a strategic response to global decarbonization imperatives. The company’s approach aligns with broader hydrological trends, wherein hydrogen is touted as a key enabler of a low-carbon economy. The challenge, however, remains in scaling production and deployment to meet global demand reliably and sustainably. By channeling resources into flagship projects, Air Liquide appears committed to bridging this gap through innovation and technology, promising to enhance hydrogen’s role in combating climate change.
This effort comes amidst a slew of initiatives by various stakeholders focusing on hydrogen. Examples include Oman earmarking 17 km2 for a Green Hydrogen Zone and collaborations like Res Integra and Ohmium for a 4-megawatt green hydrogen project in Sicily, indicating a growing global embrace of hydrogen technologies. These developments mark a significant milestone in the pursuit of sustainable energy solutions, challenging industry players to adapt and innovate continuously.
