An updated SDG bond issuance framework for AFD

In 2020, to align its 100% Paris Agreement and 100% Social Link commitments with its market presence, AFD Group introduced a bond issuance framework aligned with the Sustainable Development Goals (SDGs).

Since then, more than 17 billion euros equivalent have been issued under this format, helping to finance projects with the highest environmental and social impacts, in favor of the most vulnerable communities.

In 2024 the AFD Group updated its SDGs bond issuance framework, addressing five main objectives:

1. Align the framework with the Group's new strategic objectives; 
2. Simplify eligibility criteria and integrate new market guidance; 
3. Increase the pool of eligible loans, while maintaining strict criteria (notably by integrating French overseas territories loans, while tightening eligibility criteria for public policy budget financing); 
4. Reflect the evolution of internal processes (standardization of sustainable development analysis at AFD and Proparco levels, a cornerstone of the framework); 
5. Reaffirm AFD Group's contribution to a just transition.

Loans will continue to be selected according to their contribution to the SDGs, with the framework taking into account the interrelationships between the SDGs according to the "Do not significant harm" principle, so that only loans with a positive or neutral score on each of the dimensions of the Sustainable Development analysis are retained.

The new issuance framework is aligned with ICMA's Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.

It has been assessed by Moody's Ratings.

To go further : AFD Group: 10 years of sustainable bond issuances