Alstom Secures €700M Green Hybrid Bond in Strategic Sustainability Push

Event summary

  • Alstom placed a €700M European Green Hybrid perpetual Bond issuance on June 9, 2026, as part of its €1.5B Euro Medium Term Notes (EMTN) Programme.
  • The bonds bear a fixed rate coupon of 5.25% per annum for the first 5.25 years and a resettable rate every 5 years thereafter.
  • Moody’s assigned a 50% equity content to the bonds and a Ba2 rating, two notches below Alstom's Baa3 senior unsecured rating.
  • The proceeds will finance and refinance assets/expenditures described in the European Green Bond Factsheet, reviewed by Moody’s.
  • The bond is expected to be repaid upon maturity in October 2026.

The big picture

Alstom's €700M Green Hybrid Bond issuance underscores its strategic focus on sustainable finance and maintaining an investment-grade rating. The transaction reflects strong investor appetite for green bonds in the rail sector, aligning with broader industry trends toward low-carbon mobility solutions. The deeply subordinated nature of the bonds and their Ba2 rating highlight the balance between financial flexibility and credit risk management.

What we're watching

Sustainability Commitment
How Alstom will allocate the €700M proceeds to accelerate its low-carbon mobility objectives and whether this will enhance its competitive positioning in the sustainable transport sector.
Investor Diversification
The impact of the multiple oversubscription on Alstom's investor base diversification and its ability to maintain strong demand across geographies and investor classes.
Rating Stability
The pace at which Alstom can sustain its Investment Grade rating while managing the deeply subordinated nature of the hybrid bonds and their Ba2 rating.