Press Release - Sustainable Bond Report: AFL continues its strategy of financing regional transformation

Core Insights - AFL has published its 2025 Sustainable Bond Report, highlighting the allocation and impact of funds raised under its sustainable bond programme initiated in 2020 [2][3] - The programme has successfully raised €2.25 billion, including €1.5 billion through benchmark issues and private placements, aimed at supporting regional transformation projects [3][6] Group 1: Sustainable Bond Programme - The sustainable bond programme was launched in 2020 to provide French local governments with access to sustainable financing without additional operational or reporting constraints [4] - AFL commits to issuing at least one sustainable bond every two years, ensuring a diversified and transparent financing strategy while adhering to ICMA principles [5] - The programme has received strong investor demand, with three €500 million issues in 2020, 2022, and a third in October 2024, indicating the programme's success and AFL's attractiveness as an issuer [6][7] Group 2: Fund Allocation and Impact - As of December 31, 2024, 100% of the funds from the third sustainable bond issue were allocated to refinancing loans for local governments, with 53% directed to the most vulnerable regions [8] - The allocation of funds includes 62.7% for essential social services, 23% for sustainable infrastructure and regional development, and 14.3% for energy and ecological transition projects [9] - The programme aims to ensure that a significant portion of funds is directed towards projects with high social and environmental impact, particularly in disadvantaged areas [10] Group 3: Company Overview - AFL is the only French bank fully owned by local governments, providing rapid, tailor-made financing for local investments while promoting a sustainable and responsible finance approach [12] - Since its inception in 2015, AFL has granted nearly €12 billion, including €2 billion in 2025, and currently has 1,271 shareholders [12]