{"id":32245,"date":"2024-04-10T07:00:47","date_gmt":"2024-04-10T05:00:47","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=32245"},"modified":"2024-04-10T10:50:42","modified_gmt":"2024-04-10T08:50:42","slug":"ngos-call-on-banks-and-investors-to-cut-totalenergies-main-source-of-finance","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2024\/04\/10\/ngos-call-on-banks-and-investors-to-cut-totalenergies-main-source-of-finance\/","title":{"rendered":"NGOS call on banks and investors to cut TotalEnergies’ main source of finance"},"content":{"rendered":"

10 <\/span>April<\/span> 2024<\/span> \u2013 <\/span>Reclaim Finance has today joined with some<\/span> 60 NGOs from around the world <\/span>in<\/span> signing an open letter <\/span>calling on banks and investors <\/span>to stop <\/span>participating<\/span> in bond<\/span>s<\/span> (loans granted by investors and <\/span>facilitated<\/span> by banks) <\/span>issue<\/span>d by<\/span> TotalEnergies<\/span> (1). <\/span>Bonds are<\/span> the French <\/span>oil and gas <\/span>major’s main source of financing, <\/span>and as such<\/span> enable it to pursue its climate<\/span>-wrecking<\/span> strategy by developing new oil and gas projects, <\/span>ignoring<\/span> scientific recommendations to limit global warming to 1.5\u00b0C. Th<\/span>e letters come j<\/span>ust days after <\/span>TotalEnergies<\/span> raised US$4.25 billion on the bond market, with the help of<\/span> several banks, including<\/span> BPCE\/Natixis<\/span>, Standard Chartered<\/span> and Deutsche Bank<\/span>. With four <\/span>existing <\/span>bonds due to expire this year, the NGOs are warning <\/span>banks and investors against their renewal<\/span>.\u00a0\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n<\/div>

TotalEnergies<\/span> currently has 45 active bonds, <\/span>totaling<\/span> US$48.9 billion (2), with bonds account<\/span>ing<\/span> for <\/span>some<\/span> 68% of its financing between 2016 and 2022 (3)<\/span>.\u00a0 <\/span>Last week, <\/span>TotalEnergies<\/span> raised US$4.25 billion on the bond market <\/span>supported by <\/span>banks, including <\/span>Standard Chartered, <\/span>BPCE\/Natixis, and Deutsche Bank.<\/span> (<\/span>4<\/span>)<\/span>. <\/span><\/span>\u00a0<\/span><\/span><\/span><\/p>\n

The company, which <\/span>shows no sign of transitioning away f<\/span>rom oil and gas<\/span> (5)<\/span>, can use th<\/span>is finance<\/span> (6) to continue its strategy of developing new oil and gas projects in 53 countries, including Mozambique, Papua New <\/span>Guinea<\/span> and South Africa (7). <\/span>Bonds are<\/span> particularly <\/span>useful<\/span> to <\/span>TotalEnergies<\/span> given that<\/span> some banks, particularly French banks, have pledged to stop directly financing <\/span>some of <\/span>its<\/span> more <\/span>controversial projects such as <\/span>the <\/span>E<\/span>ast <\/span>A<\/span>frican <\/span>C<\/span>rude <\/span>O<\/span>il <\/span>P<\/span>ipeline (EACOP)<\/span> or Papua LNG (8). <\/span>B<\/span>y helping <\/span>T<\/span>otalEnergies<\/span> to raise money on the bond market, they are indirectly enabling it to finance these projects.<\/span><\/span>\u00a0<\/span><\/p>\n<\/div><\/div><\/div>

<\/i>

Bonds are <\/span>more discreet than project financing and provide <\/span>TotalEnergies<\/span> with a veritable<\/span> El Dorado.<\/span> It<\/span>\u2019<\/span>s<\/span> mind blowing to see that the financial players involved in Total\u2019s latest bond are agreeing to finance Total until 2064! It is <\/span>more than <\/span>time that the investors and the banks behind these colossal transactions recognize<\/span>d<\/span> their responsibility in financing <\/span>T<\/span>otal<\/span>\u2019<\/span>s clim<\/span>a<\/span>te<\/span>–<\/span>wrecking strategy<\/span><\/span>.<\/span><\/span><\/em><\/p>\n<\/div>

Lara Cuvelier, <\/span>Sustainable Investment Campaigner at Reclaim Finance<\/span><\/strong><\/p>\n<\/div><\/div><\/div>

The NGOs are calling on the banks to commit to no longer facilitating the issue of new bonds by TotalEnergies or any other company developing new oil and gas projects. They are also calling on investors to stop investing in new bonds issued by TotalEnergies and to make a public commitment not to invest in bonds issued by any company developing new oil and gas projects.   <\/span> <\/span><\/p>\n

With 10 of <\/span>TotalEnergies<\/span>\u2018 45 active bonds due to expire by the end of 2025 (9), it is possible that the company will seek to renew them <\/span>in order to<\/span> raise capital. Faced with this risk, <\/span>58<\/span> NGOs <\/span>have sent an open letter to the banks and investors involved in <\/span>TotalEnergies<\/span>\u2019 most recent<\/span> bond<\/span>s<\/span>, <\/span>including <\/span><\/span>Abrdn<\/span>, Allianz, Amundi, BlackRock, Bank of America, Barclays, NatWest<\/span>, Deutsche Bank<\/span> and<\/span><\/span> Soci\u00e9t\u00e9 G\u00e9n\u00e9rale <\/span>asking them not to renew their support. <\/span><\/span> <\/span><\/p>\n<\/div>

Read the briefing<\/span><\/a><\/div><\/div><\/div>
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Contacts:<\/h2><\/span>
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