Alstom has successfully completed its first Green Bond Issuance, raising €700 million through an inaugural European Green Bond offering. The heavily oversubscribed transaction reflects strong investor demand for sustainable investments and will be used to finance and refinance projects aligned with the company’s low-carbon mobility strategy. The issuance also supports Alstom’s commitment to maintaining its investment-grade profile while advancing sustainable transportation solutions across global markets.
Key Overview
- Alstom raised €700 million through its first European Green Bond
- The transaction was multiple times oversubscribed
- Bond carries a 5.25% fixed coupon for the first 5.25 years
- Proceeds will finance eligible green projects
- Moody’s assigned a Ba2 rating to the bond
- Bond forms part of Alstom’s €1.5 billion EMTN Programme
- Funds will support low-carbon mobility initiatives
Alstom Launches Inaugural European Green Bond
Alstom has successfully raised €700 million through its inaugural European Green Bond, marking a significant milestone in the company’s sustainability financing strategy.
The bond issuance was completed under Alstom’s €1.5 billion Euro Medium Term Notes (EMTN) Programme, published by France’s Autorité des Marchés Financiers (AMF) on June 3, 2026.
The transaction attracted strong interest from investors across multiple regions and investor categories, becoming several times oversubscribed. The strong demand highlights growing investor appetite for environmentally focused financing instruments that support the transition to a low-carbon economy.
With the successful issuance, Alstom continues to strengthen its position as a leading provider of sustainable transportation solutions while diversifying its investor base.
Financing Low-Carbon Mobility Projects
The proceeds from the bond will be used to finance and refinance projects identified in Alstom’s European Green Bond Factsheet.
These investments are aligned with the European Green Bond framework and support the company’s efforts to accelerate the transition toward cleaner and more efficient transportation systems.
As governments and businesses continue investing in climate-focused infrastructure, access to Sustainable Finance has become increasingly important for companies seeking to develop innovative low-carbon technologies.
Alstom said the transaction reinforces its commitment to creating long-term value through sustainable operations and environmentally responsible investments.
Structure of the Bond
The new security was issued as a perpetual and deeply subordinated hybrid instrument.
The bond carries a fixed coupon rate of 5.25% per annum for the first 5.25 years. After that period, the interest rate will reset every five years according to predetermined terms.
The securities are direct, unconditional, unsecured, undated, and deeply subordinated obligations of Alstom.
Moody’s assigned the bond a Ba2 rating, which is two notches below Alstom’s Baa3 senior unsecured rating.
Importantly, Moody’s also assigned a 50% equity content to the instrument, recognizing characteristics that provide balance-sheet flexibility similar to equity financing.
This structure enables Alstom to strengthen its financial position while preserving access to capital for future growth opportunities.
Context is everything. Stay ahead of shifting trends with today’s market updates, and uncover emerging opportunities using the Serrari Group Market Index and Marketplace. Then, take control of your own financial future by exploring our Money & Life Reset Transformation Blueprint ™ to build stronger habits, create better systems, and design a path toward lasting wealth.
Supporting Green Mobility Investment
The transaction reflects increasing global demand for Green Mobility Investment as governments and investors seek solutions that reduce emissions from transportation networks.
Rail transport is widely recognized as one of the most efficient and environmentally sustainable forms of mass transit.
As a major supplier of rail infrastructure, rolling stock, signaling systems, and mobility solutions, Alstom plays a critical role in supporting decarbonization efforts across the transportation sector.
The company’s green financing strategy is designed to align capital allocation with projects that contribute to emissions reduction, energy efficiency, and sustainable mobility development.
By raising dedicated green capital, Alstom can continue expanding technologies that support climate goals while meeting growing transportation demand worldwide.
Strong Investor Demand for Hybrid Green Bonds
The successful issuance also highlights continued investor confidence in Hybrid Green Bonds, which combine characteristics of both debt and equity instruments.
Hybrid structures have become increasingly attractive for companies seeking long-term funding while maintaining financial flexibility and protecting credit ratings.
The strong oversubscription demonstrates that investors remain willing to allocate capital to high-quality green projects, particularly those linked to transportation and infrastructure decarbonization.
The transaction also broadens Alstom’s funding sources and strengthens its position within sustainable capital markets.
Backed by Leading Financial Institutions
Credit Agricole Corporate and Investment Bank served as the green structuring bank for the transaction.
The issuance was coordinated by BNP Paribas, Credit Agricole Corporate and Investment Bank, HSBC, and Natixis as global coordinators and joint bookrunners.
Additional support was provided by Banco Bilbao Vizcaya Argentaria (BBVA), Deutsche Bank, and Société Générale, which acted as active bookrunners.
The participation of major international financial institutions underscores market confidence in both Alstom’s credit profile and its sustainability-focused financing strategy.
Outlook
Alstom’s €700 million European Green Bond issuance represents a major step forward in the company’s sustainable finance strategy. The strong investor response highlights growing confidence in green financing instruments and reinforces the importance of low-carbon transportation investments in global climate efforts.
As demand for sustainable mobility solutions continues to rise, the financing provides Alstom with additional resources to advance environmentally responsible projects while supporting long-term growth and maintaining financial flexibility.
FAQs
Q1: What is Alstom’s European Green Bond issuance?
Alstom has raised €700 million through its inaugural European Green Bond issuance. The proceeds will be used to finance and refinance eligible projects that support low-carbon mobility and sustainable transportation solutions.
Q2: How will Alstom use the proceeds from the green bond?
The funds will be allocated to projects and expenditures outlined in Alstom’s European Green Bond Factsheet, including initiatives that contribute to cleaner transportation, reduced emissions, and sustainable mobility infrastructure.
Q3: Why is the green bond issuance significant for Alstom?
The issuance strengthens Alstom’s sustainable finance strategy, diversifies its investor base, supports its investment-grade profile, and provides capital to accelerate the transition to low-carbon mobility solutions.
Q4: What are the key terms of Alstom’s new green bond?
The bond has a principal amount of €700 million and carries a fixed coupon rate of 5.25% per year for the first 5.25 years, after which the rate will reset every five years. It is structured as a perpetual, deeply subordinated hybrid bond.
Q5: What does strong investor demand for the bond indicate?
The bond was multiple times oversubscribed, reflecting strong investor confidence in Alstom’s financial position, sustainability strategy, and the growing demand for green investment opportunities that support climate and transportation goals.
Sources: Market Screener, GlobeNewswire, Yahoo Finance, BriefGlance
Your financial future isn’t something you wait for—it’s something you build.
The real question is: when do you begin?
Move beyond simply staying informed.
Navigate the markets with clarity—track trends through the Serrari Group Market Index, uncover opportunities in the Serrari Marketplace, and build practical knowledge with our Curated Wealth Builder Platform.
Stay connected to what truly matters.
Get daily insights on macro trends and financial movements across Kenya, Africa, and global markets—delivered through the Serrari Newsletter.
Growth opens doors.
Advance your career through professional programs including ACCA, HESI A2, ATI TEAS 7 , HESI EXIT , NCLEX – RN and NCLEX – PN, Financial Literacy!🌟—designed to move you forward with confidence.
See where money is flowing—clearly and in real time.
Track Money Market Funds, Treasury Bills, Treasury Bonds, Green Bonds, and Fixed Deposits, alongside global and African indexes, key economic indicators, and the evolving Crypto and stablecoin landscape—all within Serrari’s Market Index.
