Île-de-France Mobilités, the public authority responsible for organizing and financing public transport in the Paris region, has raised EUR 1 billion by issuing its second European Green Bond (EuGB), consolidating its position as a key player in the field of sustainable public transport financing. The issue, carried out on January 27, 2026, was oversubscribed more than seven times, with total demand exceeding EUR 7.6 billion.
The bond has a maturity of 20 years, until February 2046, and was issued with a yield of 4.229%, corresponding to a coupon of 4.200%. The transaction marks the first bond issue in 2026 on European markets and also represents the lowest spread ever obtained by Île-de-France Mobilités against French sovereign bonds (OAT) – only 13 basis points.
Strong investor demand
The success of the operation reflects investor confidence in the financial strength of the Paris region transport authority, rated Aa3 by Moody’s and A+ by Fitch. Over 140 institutional investors participated in the issue, and the structure of demand allowed for a price compression of 4 basis points compared to the initial indications.
The banking syndicate coordinating the transaction consisted of BNP Paribas, Deutsche Bank, HSBC, Nomura, and Société Générale. The market environment was favorable, with French sovereign bond yields falling by around 5 basis points in the days leading up to the issue.
Funding dedicated to clean public transport
The funds raised will be allocated exclusively to the financing and refinancing of low-emission transport projects, in accordance with the European Union Taxonomy and the strict requirements of the European Green Bond (EuGB) standard, regulated by Regulation (EU) 2023/2631.
The Île-de-France Mobilités strategy aims to reduce greenhouse gas emissions from transport by 25-30% by 2030 compared to 2019 levels. To achieve this goal, the regional authority is investing heavily in:
- modernizing public transport networks;
- renewing electric rolling stock (trains, metros, trams, and tram-trains);
- expanding fleets of low- or zero-emission buses;
- developing associated infrastructure and active mobility solutions.
Four major categories of eligible projects
Funds will be allocated to four main categories of projects:
- Renewal of zero-emission urban and suburban transport, including electric buses;
- Renewal of electric rolling stock, such as trains, metros, and trams with zero exhaust emissions;
- Modernization of low-emission public transport infrastructure;
- Improvement of the quality of mobility services, including accessibility, passenger information, and intermodality.
Approximately 25% of the funds will be directed towards activities considered “enabling,” such as the modernization of depots and fixed installations necessary for the operation of electric rolling stock.
Transparency and impact reporting
As part of this issue, Île-de-France Mobilités has committed to publishing, at least once during the life of the bond, a detailed environmental impact report, which will be subject to an independent external assessment, in accordance with EuGB requirements. This approach aims to provide investors with full traceability of the climate impact of the projects financed.
Since the launch of its first green bond in May 2021, Île-de-France Mobilités has raised EUR8.3 billion through this type of financial instrument, with all funds dedicated to the development of decarbonized public transport in the Paris region.
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