Crédit Agricole and Investment Bank announce first green ABCP note financing EVs in client auto loan and lease pools


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Crédit Agricole Corporate and Investment Bank announced its first issuance of a green Asset-Backed Commercial Paper (ABCP)note, raising USD25 million. Crédit Agricole CIB understands this to be the industry’s first green ABCP note financing electric vehicles (EVs) in client auto loan and lease pools. The note was issued by La Fayette Asset Securitisation LLC (a multi-seller ABCP program providing secured financing for bank clients, sponsored by Crédit Agricole CIB) and will be the first of numerous expected green note issuances for the Crédit Agricole CIB ABCP programs (Atlantic, La Fayette, and LMA).

Arnaud d’Intignano, Global Head of Financing & Funding Solutions commented that, they were very excited to structure the first of many green ABCP issuances financing underlying EV loans and leases in their ABCP programs placed with a leading environmental, social and governance (ESG) investor, while building on the bank’s leadership position in green bond distribution and ABS/ABCP securitisation underwriting and financing.

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Michael Guarda, Regional Head of Financing & Funding Solutions Americas stated that, the initiative was the result of robust collaboration among internal teams dedicated to finding innovative green financing solutions. The company looked forward to developing further green structured financing opportunities for ESG investors within their ABCP and ABS platforms by expanding the flow of EV and hybrid electric vehicle (HEV) financing, while introducing new eligible green asset categories over time in alignment with the Green Bond Framework.

With very specific green asset ABCP eligibility standards and green “Use of Proceeds” criteria tailored to securitisation transactions, along with the merging of green ABCP financing criteria into the Crédit Agricole Group’s Green Bond Framework (Green Bond Framework) and periodic update of the independent Second Party Opinion, there will be a high-level of assurance that the eligible green ABCP assets are in alignment with the Green Bond Framework and the Green Bond Principles. Further, the green ABCP assets will conform with the Crédit Agricole Corporate Social Responsibility (CSR) policy and contribute to the United Nations Sustainable Development Goals (SDGs) as outlined by the Green Bond Framework.

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Tanguy Claquin, Global Head of Sustainable Banking stated that, the green ABCP note issuance structure was a reflection of the Group’s long-term commitment to the green bond markets, with the view to providing sustainable finance solutions to their clients and green investments opportunities to ESG investors. The bank was applying significant resources to develop green financing solutions with environmental impact globally, and had maintained a position at the top of the green bond underwriting league tables for many years. The green ABCP financing was a terrific progression showing how climate change is now embedded in all their product offerings.

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