Arkema issues €500 million green bond to fund sustainable projects, reinforcing climate goals, EU taxonomy alignment, and innovative material development.
Arkema has successfully completed the placement of a new €500 million green bond with an eight-year maturity and an annual coupon rate of 3.50%. This issuance demonstrates the company’s ongoing commitment to integrating sustainability principles into its financing strategy while also supporting its long-term growth objectives.
The latest transaction builds upon Arkema’s earlier success in the green bond market. Five years ago, the company issued its first green bond to fund the construction of its fully bio-based Rilsan® polyamide 11 plant in Singapore. That project represented a major milestone in Arkema’s sustainability journey, and this new green bond continues that trajectory. By securing fresh financing, Arkema aims to further strengthen its environmental initiatives and reinforce its dedication to climate action and the creation of sustainable, innovative materials.
The net proceeds raised through this issuance will be allocated toward financing or refinancing a series of strategic programs designed to promote sustainable development. These projects are primarily connected to Arkema’s large-scale investments, most of which align closely with the European Union taxonomy for sustainable economic activities. This ensures that the funding supports initiatives with real environmental benefits while meeting recognized regulatory standards.
Arkema’s Green Financing Framework serves as the foundation for this bond issuance. This framework organizes eligible green projects into six distinct categories, each contributing to the company’s broad environmental strategy. These categories include renewable energy initiatives, energy efficiency improvements, the development of eco-efficient and circular economy-focused products, advanced production technologies and processes, the construction of green buildings, and projects related to sustainable water management and treatment. In addition, the framework also encompasses climate adaptation measures, reflecting Arkema’s recognition of the need to prepare for and mitigate the effects of climate change.
To provide assurance and credibility to investors, the framework underwent an independent evaluation. Moody’s carried out the assessment and awarded it an SQS2 “Very Good” Sustainability Quality Score. This rating highlights Arkema’s high level of sustainability performance and underscores the bond’s credibility as a meaningful financial instrument that channels capital into environmentally responsible activities.
Through this successful bond placement, Arkema is not only strengthening its financial foundation but also reinforcing its leadership role in driving the chemical industry toward greater sustainability. By aligning investment decisions with environmental priorities and global climate goals, the company continues to demonstrate how innovation, finance, and sustainability can be integrated to create lasting value.
