Air Liquide Raises €500M For Low-Carbon Projects

Air Liquide has raised €500 million from various investors through a green bond issuance, once again demonstrating its commitment to sustainable development and energy transition. The money will be used to finance flagship projects in low-carbon hydrogen and air gases, supporting the company's long-term strategy under its ADVANCE plan.

The 2035 bond has a fixed 3.500% annual coupon rate. The issue was well oversubscribed, which demonstrates good investor confidence in Air Liquide's business model and its sustainability strategy. This transaction is the group's third green bond issue, after earlier fully allocated 2021 and 2024 bonds.

Air Liquide’s Chief Financial Officer, Jérôme Pelletan, emphasized the importance of this issuance in strengthening the company’s position in the market while advancing its sustainability objectives. “This new green bond issuance, less than a year after the launch of our previous one, confirms the strength of our market signature in a context marked by numerous uncertainties. It once again reflects investor confidence in our robust business model,” he stated. He also emphasized that the funds will finance record levels of investment decisions made in 2024 and will allow the company to design transformational projects for its clients, especially within the energy transition space.

The issue highlights the environmental and financial attractiveness of Air Liquide to investors, with the bond being well-rated by major rating agencies. Standard & Poor's and Scope Ratings have rated it "A," while Moody's has rated it "A2." The ratings reflect the firm's sound financial position and focus on sustainable growth.

Air Liquide's ADVANCE strategy is centered around reconciling economic growth with respect for the environment. The company has been a pioneer in creating low-carbon products, with hydrogen as an integral part of its decarbonization roadmap. With the acquisition of more funding via green bonds, Air Liquide hopes to speed up its quest for offering cleaner energy solutions, enabling industries and governments to meet their carbon-cutting ambitions.

The global demand for low-carbon hydrogen has been growing as a result of ambitious climate policies and the transition to cleaner energy. Hydrogen is seen as a critical enabler of the energy transition, especially in hard-to-decarbonize sectors like heavy industry and transport. Air Liquide has been investing in hydrogen technologies and infrastructure, developing projects that enable large-scale production and distribution of hydrogen while lowering carbon emissions.

The green bond issuance is at a time when financial markets are increasingly focusing on sustainability-linked investments. Institutional investors are keen to find opportunities to finance companies with robust environmental, social, and governance (ESG) ratings. Air Liquide's success in drawing major investor attention testifies to its reputation in financial as well as sustainability terms.

This newest round of fundraising is part of larger industry trends, as energy and chemical firms are raising capital to drive the shift toward cleaner energy sources. For instance, ExxonMobil has just announced a massive low-carbon hydrogen facility that will come online in 2027. These types of projects show the increasing momentum for hydrogen as a key element of the future energy mix.

As Air Liquide continues its growth fueled by sustainability, the successful issuance of this green bond adds further financial means to fund its ambitious initiatives. With a solid market position, well-defined strategic direction, and clear commitment to cutting carbon emissions, the company is well-placed to be a leader in the global energy transition.

Through the use of these funds, Air Liquide will continue to pursue innovative solutions that not only advance its business but also address the global battle against climate change. The investments made by the company in low-carbon hydrogen and air gases are a move toward a more sustainable, cleaner energy future, solidifying its position as a leader in the transformative energy space.