Europcar Mobility Group takes a key step in the deployment of its carbon reduction plan by launching a financial obligation linked to sustainable development
PARIS–(COMMERCIAL THREAD) – Regulatory news:
A major player in mobility, Europcar Mobility Group (Paris: EUCAR) is convinced that it can make a significant contribution to the – essential – transition towards a low-carbon world: by offering attractive alternatives to owning a vehicle – and by always offering more green mobility solutions to its customers.
In 2005, the Group was the first player in the vehicle rental sector to adhere to the United Nations Global Compact for sustainable development. In 2019, Europcar Mobility Group reinforced this ambition by joining the “Science-Based Targets Initiative” *, to carry out actions in line with the objectives of the Paris Agreement. The launch of its “One Sustainable Fleet” program was a step forward in actively increasing the share of green vehicles in its fleet over the years.
The ambition of Europcar Mobility Group is now part of a global carbon reduction plan, allowing the Group to have a systemic approach to carbon reduction, encapsulating and managing all the key processes that have an impact.
Last week, in accordance with its ambition, the Group issued an offer of € 500 million in Senior Secured Notes linked to sustainable development, based on “fleet greenification” criteria and aimed at refinancing its fleet. The Group wishes to rely on sustainable financing to accelerate its carbon transition; a lever that it considers both very relevant and powerful for engaging its internal and external stakeholders, as well as for transforming its operating model.
The objective of the Note Offer ** is to proactively manage the debt profile linked to the Company’s fleet as part of its € 1.7 billion securitization program refinanced last July. As part of its Notes Offer, Europcar Mobility Group has established robust Sustainable Performance Objectives, namely:
reduce the carbon emissions of its fleet of cars and vans to reach an average of 93 g CO2 / km for passenger cars and 144 g CO2 / km for vans, respectively, by the end of 2024,
objective of having green vehicles (less than 50 g of CO2 / km) representing 20% of its fleet of cars and vans by the end of 2024.
In this context, the Second Party Opinion requested from VE (Vigeo Eiris, a subsidiary of Moody’s) on the financing framework linked to sustainable development put in place by the Group was assessed as “Advanced” ***, both in terms of the relevance of KPI as of Sustainable Performance. The ambition of the targets.
This bond issue – the first of its kind for Europcar Mobility Group and also a first in the car rental sector – was a great success, with more than 4x the subscription rate, at a very competitive price.
“We believe that the mobility services we offer our customers – from car rental and carsharing to on-demand vehicles and subscription – are alternatives to owning a vehicle and are therefore part of solutions to move to a low carbon world. We are also determined to reduce our carbon footprint year after year: in particular by addressing our indirect emissions, which represent 98% of our carbon footprint and are largely dominated by the use of our fleet by our customers.
The bond issue we have just completed reflects a choice that commits our entire organization: the choice to act directly on the “CO2” profile of our fleet, where we can have a significant impact. Our Finance teams have fully integrated this commitment by translating it into the fleet financing strategy, and as such, we are particularly proud of the success we have achieved.
We will continue our systemic approach, with “low carbon initiatives” in all of the Group’s key functions, and gradually involving our customers ” – Caroline Parot, CEO, Europcar Mobility Group
* Under the 2015 Paris Agreement, states pledged to limit global temperature rise to well below 2 ° C by 2100. In 2018, the Intergovernmental Panel on Climate change has warned that global warming must not exceed 1.5 ° C to avoid catastrophic climate impacts. cash. To achieve this, GHG emissions must be halved by 2030 – and drop to net zero by 2050. With this limited time to act, the private sector has a crucial role to play – every sector in every market. must transform.
Companies joining the Science-Based Targets initiative have committed to reducing their emissions on a large scale.
** The issue of the Sustainability-linked Financial Bond was supported by:
BNP Paribas as lead left bank, ESG advisor and global coordinator,
CACIB as global coordinator and rating advisor,
HSBC as global coordinator.
The Sustainability Notes will bear interest at a rate of 3.0% per annum, subject to the adjustments described below, and payable semi-annually. These are excellent financial conditions given the rating of the existing senior guaranteed bonds due 2022 issued by EC Finance plc (the “2022 tickets”): Rated CCC + by S&P and reclassified from B3 to B2 on September 21, 2021 by Moody’s.
*** See details on the Group’s Investors website:
– Group ESG framework for the issuance of the bond
– Opinion of the second part of VE (Vigeo Eiris)
– Press release announcing the launch of a € 500 million offer of senior covered bonds linked to sustainable development
About Europcar Mobility Group
Europcar Mobility Group is a major player in the mobility markets and listed on Euronext Paris. The objective of Europcar Mobility Group is to offer attractive alternatives to owning a vehicle, in a responsible and sustainable manner. With this in mind, the Group offers a wide range of car and van rental services – whether for a few hours, a few days, a week, a month or more – with an already “CO2 light” fleet equipped with them. most recent engines, and which will be increasingly “green” in the years to come.
Customer satisfaction is at the heart of the Group’s ambition and that of its employees. It also fuels the continuous development of new offers in the Group’s three service lines – Professional, Leisure and Convenience – which meet the specific needs and use cases of businesses and individuals. The Group’s 4 major brands are: Europcar® – the European leader in the rental of cars and light commercial vehicles, Goldcar® – the leader in low-cost car rental in Europe, InterRent® – the rental of cars’ mid -tier ‘and Ubeeqo® – one of the European leaders in round-trip carsharing (BtoB, BtoC). Europcar Mobility Group offers its mobility solutions worldwide via an extensive network in more than 140 countries (including 100% subsidiaries – 18 in Europe, 1 in the United States, 2 in Australia and New Zealand – completed by franchises and partners).
More details on our website: www.europcar-mobility-group.com