Sustainable financing of AFL

At AFL, no green loans,
No impact loans,
No structured loans…

But truly responsible financing for truly sustainable projects!

Embodying sustainable finance

This is the objective that our local authorities have set for our bank.

In line with its ethical and responsible commitments, AFL has set up a system for the sustainable financing of local authority investments.

AFL has identified three main categories of investments in the budgets of its shareholder local authorities with more than 3,500 inhabitants that directly support the UN’s Sustainable Development Goals (SDGs).

The 3 main investment areas :  


Access to essential and basic social services (education and culture, employment, access to essential health services, social inclusion);


Energy and ecological transition (low-carbon public transport, pollution prevention and control, renewable energy, etc.);


Sustainable infrastructure, cities and territorial cohesion (sustainable water management, accessible housing, sustainable and accessible infrastructure).

What local authorities investments are eligible for sustainability bonds?

To finance the capital expenditures thus categorized, AFL launches sustainability bond issues.

500 million euros

raised in July 2020 in the form of sustainability bonds

500 million euros

raised in January 2022 in the form of sustainability bonds

Issuing sustainability bonds

Who are the bonds offered to?
French and international investors wishing to allocate their savings to sustainable investments.

In addition to respecting the regulatory principles for the selection of eligible investors (fight against money laundering and the financing of terrorism, compliance with embargoes, etc.), AFL applies 5 major principles of equal importance in its allocation policy (valid for all its bonds):

  • the price at which the investor acquires the securities issued
  • The speed with which the investor participates in the order book
  • The loyalty of the investor
  • The nature of the financing
  • The CSR nature of the investor

Recognition of the scheme?
In January 2020, Moody’s investors (formerly Vigéo Eiris) reviewed the system in place and expressed “reasonable assurance” (the highest level of assurance) on AFL’s commitments. The allocation of funds for each issue is reviewed by AFL’s statutory auditors.


The advantage of our framework?

Thanks to AFL, a large number of us, not just the largest local authorities, have access to sustainable financing. This mechanism also serves the entire structure, and thus all its shareholders, by contributing to the refinancing of AFL.

Examples of funded projects

Métropolis of Grenoble (38)

Construction of a cogeneration plant

Occitanie Region

Modernization of railroad lines and purchase of new rolling stock

ILEVA Grouping of local authorities (974)

Construction of a waste recycling plant in Reunion Island

Surburban community of Bourg-en-Bresse (01)

Construction of a greenway to promote cycling

Municipality of Bouscat (33)

Creation of new kindergarten classes, construction of a crèche

Municipality of Grigny (91)

Construction of a health center in Grande Borne

Départment of Allier (03)

Preservation of water resources by diversifying agricultural activities

Sustainability Bonds
1. Sustainability bonds - Framework
2. Sustainability bonds - Second party opinion - Vigeo Eiris
3. Sustainability bonds - Reporting 2021
4. Sustainability bonds - Reporting 2023
Business and sustainable development overview 2023
Business and sustainable development overview 2023

Discover more about ESG at AFL

Our ESG commitments
Rails de tramway dans environnement vert

Ethics and responsibility

“Embody responsible finance to empower local
to meet the present
and future needs of their inhabitants."

Paysage rural avec éoliennes

A responsible bank

AFL is committed to working with us, local authorities, to lead the energy and social transitions that are coming and are necessary.

Bornes de recharges de vélos électriques

A responsible company

AFL is directly committed as a company to the planet and to its employees.

Find out more about AFL’s financial situation and funding strategy.

Investors area

Do you have any question ?

  • Are your ESG issuances per project or for a pool

    ESG issuances are for a pool of loans. These loans are selected as per our methodology which is detailed in our Sustainability Bond Framework.

  • Do you provide ESG loans?

    AFL does not provide ESG loans. However, based on a screening methodology of local authority budgets (detailed in the Sustainable Bond Framework), ESG capital expenses can be financed by loans that are refinanced through AFL’s Sustainability Bond issuances.

  • What is the purpose of the scoring methodology while local governments are governed by a strict budget regulatory framework?

    Better assess the financial profile of each local authority with the objective to build up a financially sound and well distributed loan portfolio.

  • What kind of projects are you financing?

    AFL is only financing capital expenses of its members-shareholders and by so projects linked to their respective responsibilities and areas of intervention (such as transport, social work, waste management, water treatment and distribution, firefighting, schools, etc..).