Alstom successfully completes inaugural 700 million euro European green hybrid bond issuance
Alstom successfully priced yesterday its inaugural European green perpetual deeply subordinated (or 'hybrid') bond issuance for a nominal amount of 700 million euros, under its 1.5 billion euro Euro Medium Term Note (EMTN) program, published on June 3, 2026, by the Autorité des Marchés Financiers (AMF).
The bonds carry a fixed annual coupon of 5.25% for the first 5.25 years, with a rate reset every 5 years thereafter. They constitute junior subordinated perpetual securities of the issuer. Moody's has assigned these bonds a 50% equity content and a Ba2 rating, two notches below Alstom's Baa3 long-term credit rating.
This inaugural green issuance was several times oversubscribed, reflecting strong demand across various geographies and investor categories, and contributing to a broader diversification of the investor base.
An amount equivalent to the proceeds of the transaction will be allocated to the full financing and refinancing of assets and expenditures described in our European Green Bond Factsheet, available on Alstom's website and reviewed by Moody's, in accordance with the 'EuGB' (European Green Bond) regulation.
The 700 million euro bond maturing in October 2026 is expected to be repaid at maturity.
With this first European green bond issuance, Alstom reaffirms its commitment to maintaining its Investment Grade rating, while pursuing its objective of accelerating the transition to low-carbon mobility and creating sustainable value through its operations and solutions.
Alstom is one of the world leading manufacturers of infrastructures for rail transport sector. Net sales break down by family of products and services as follows:
- rolling stocks (43.1%): trains, tramways and locomotives;
- railway services (38.4%): maintenance, modernization, management of spare parts, support and technical assistance services;
- signaling, information and control systems (9.4%);
- railway infrastructures (9.1%): infrastructures for the track laying, lines electrical power systems, electromechanical equipment, telecommunication devices and traveler information in station, terminals for automatic purchase of tickets, access to escalators, lifts for disabled, automatic landing doors on platforms, ventilation, air conditioning and lighting systems).
Net sales are distributed geographically as follows: France (14.3%), Europe (45.1%), Americas (16.3%), Asia/Pacific (11.7%), and Middle East/ Africa/ Central Asia (12.6%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.