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Darrois Villey Maillot Brochier advises Valeo on the introduction of an option to issue Green Bonds or Sustainable Linked Notes in its EMTN programme and on its inaugural €700,000,000 sustainability-linked bond issuance

Paris, 5 August 2021

Darrois Villey Maillot Brochier has advised its client Valeo S.E. (“Valeo”) in connection with the annual update, on 15 June 2021, of its EMTN programme in which it decided to include the option to issue Green Bonds or Sustainability Linked Notes. The Sustainability Linked Notes include sustainability performance targets that are aligned with Valeo’s aims to reach carbon neutrality by 2050.

To that end, Valeo has selected two Key Performance Indicators that are core, relevant, and material to its business and measure progress against its sustainability commitments:

  • Valeo’s total carbon footprint, and
  • Share of production purchases from which suppliers are subject to the evaluation of their sustainable development practices over the year.

Darrois Villey Maillot Brochier also advised Valeo on its €700,000,000 seven-year inaugural sustainability-linked bond issuance. The Key Performance Indicator under the bonds is the intermediary reduction target of Valeo’s total carbon footprint to 37.95 million CO2eq tons in 2025. The coupon under the bonds will step up by 37.5bps if the target is not achieved.

Darrois Villey Maillot Brochier’s capital markets team, with Laurent Gautier (partner) and Romain Querenet de Breville advised Valeo on the inclusion of this innovative option in its EMTN programme (first French issuer) and with the issuance, along with Loic Védie (partner) on tax aspects.