Saur Group’s €550 million ($643 million) blue bond issuance in 2024 marked a defining moment for sustainable finance. It was the first blue bond issued by a corporate and the first in Europe’s water utility sector.
The deal not only introduced a new sustainable asset class to European capital markets but also expanded the scope of ESG financing beyond decarbonisation to include nature-based and water-related objectives.
Proceeds are earmarked for water production, supply, wastewater treatment and desalination – core infrastructure that supports both climate adaptation and biodiversity protection. In doing so, the bond directly addresses SDG 6 (Clean Water and Sanitation) and SDG 14 (Life Below Water), two areas that remain underfunded relative to the energy transition.
The transaction was structured in line with the International Capital Market Association’s Green Bond Principles and the EU Taxonomy. Natixis CIB acted as global coordinator and joint ESG coordinator, together with global coordinators and joint bookrunners BNP Paribas, Crédit Agricole Corporate and Investment Bank, and Morgan Stanley.
The bond was also aligned with the 2024 ESG disclosure and decarbonisation targets, ensuring it met the latest regulatory and investor expectations. Natixis’s green and sustainable hub team co-chaired the Impact Disclosure Guidance in October 2024, reinforcing the deal’s alignment with global best practice on transparency and impact reporting.
What sets this deal apart is its strategic intent. Saur used the bond not only to finance eligible projects but to signal a broader shift in how water is valued in sustainable finance
The issuance followed two days of intensive marketing and was met with strong investor demand, allowing Saur to upsize the deal from €500 million to €550 million. The final book was high quality and enabled the issuer to secure attractive pricing conditions despite a volatile market backdrop.
The deal also contributed to the rapid expansion of the blue bond market, which grew 163% in 2023 to €6.4 billion. Saur’s transaction was one of the largest blue bonds globally in 2024 and helped broaden investor access to the theme. It also set a precedent for other European utilities and corporates to follow, particularly those with exposure to water-intensive sectors.
What sets this deal apart is its strategic intent. Saur used the bond not only to finance eligible projects but to signal a broader shift in how water is valued in sustainable finance. By focusing on water as a standalone environmental objective – rather than a subset of climate or biodiversity – the bond helped expand the taxonomy of ESG investing.
In a market still dominated by carbon metrics, Saur’s blue bond offered a credible, science-based framework for investing in water resilience. It also demonstrated that nature-based solutions can be structured, marketed and priced at scale in mainstream capital markets.
