French bank BNP Paribas has priced its first €500 million green bond, the net proceeds of which will be allocated to a series of environmentally sustainable fields including renewable energies.

In announcing the pricing last week (24 November), BNP Paribas said the transaction attracted strong demand from investors which allowed the bank to price inside of its ordinary senior debt curve.

The funds will be used to finance or refinance what the company has dubbed “Eligible Green Assets” in a number of sectors in addition to renewables including energy efficiency, transportation, water management and treatment, and recycling.

Michel Konczaty, deputy chief operating officer for BNP Paribas, said: “The launch of our inaugural green bond amplifies our commitment to sustainability and to supporting projects which have a positive impact.

“We look forward to working together in continuing to deliver market based sustainable solutions which help us and our clients meet social and environmental challenges.”

The latest issuance follows the bank’s decision to increase its commitment to renewables a year ago when it doubled its exposure to this sector from €7.2bn in 2015 to €15bn in 2020. In addition, BNP Paribas has continued to promote Green Bonds to institutional investors with a goal of ranking among the top three global players in the market for euro-denominated issues by 2018.

The multinational says it has lead-managed more than €5.8 billion in Green Bonds to date, including over €1 billion in equity-linked.

In addition to this latest announcement, the Group has also decided to strengthen its policies for the management of carbon risk in line with the international aim to restrict global warming to a 2ºC increase over pre-industrial levels.