IDFM Raises €1 Billion Green Bond With Record Low Spread

Île-de-France Mobilités (IDFM) raised EUR 1 billion on January 27, 2026, through its second European Green Bond (EuGB) issuance. The transaction, which matures in February 2046, attracted total demand exceeding EUR 7.6 billion, resulting in an oversubscription rate of more than seven times. This was the first bond issue of 2026 on European markets by the Paris region transport authority.

The significant investor interest enabled a price compression of 4 basis points from initial guidance. The final yield was set at 4.229%, with a corresponding coupon of 4.200%. This pricing established a new record for IDFM, achieving the lowest-ever spread against French sovereign bonds (OAT) at just 13 basis points. The favorable market conditions were underscored by a drop of approximately 5 basis points in French sovereign bond yields in the days preceding the issue.

Over 140 institutional investors participated in the transaction, reflecting market confidence in the authority’s financial position, which holds credit ratings of Aa3 from Moody’s and A+ from Fitch. The banking syndicate that coordinated the deal included BNP Paribas, Deutsche Bank, HSBC, Nomura, and Société Générale. Since its initial green bond in May 2021, IDFM has now raised a cumulative EUR 8.3 billion via these instruments.

The issuance operates under the stringent framework of the European Green Bond (EuGB) standard, governed by Regulation (EU) 2023/2631. This places the bond within a growing market; verification data indicates that over €22 billion of bonds were issued under the EuGB standard in its first year, showing strong uptake from public and private entities. The EuGB standard requires that funds be allocated exclusively to financing and refinancing projects aligned with the European Union Taxonomy for sustainable activities.

Proceeds from the bond are dedicated to IDFM’s strategic goal of reducing transport-related greenhouse gas emissions by 25-30% by 2030, using 2019 levels as a baseline. The capital will be allocated across four primary project categories. The acquisition of new electric and hydrogen rolling stock, including metro, RER, and tramway vehicles, is a main focus. A second category involves the extension and modernization of metro and tramway lines to expand network capacity and service.

A third allocation will support the automation of existing metro lines to increase frequency and efficiency. The fourth category, designated as “enabling” activities, will receive approximately 25% of the funds. This capital is directed toward the modernization of depots and fixed installations, which are prerequisite infrastructure for operating and maintaining a fleet of electric rolling stock.

In compliance with EuGB requirements, IDFM has committed to enhanced transparency measures. The authority will publish a detailed environmental impact report at least once during the bond’s 20-year life. This report, which will undergo an independent external assessment, is designed to provide investors with full traceability of the climate impact generated by the financed projects.