Review of the Paris Private Bond 2022, the meeting point for private debt stakeholders.

The 5^th edition of the Paris Private Bond took place on October 19th after a two-year hiatus due to COVID-19. At the Hôtel des Arts et Métiers, Aether Financial Services brought together over 150 business leaders and private debt managers for this essential event, co-organized alongside other partners: CMS Francis Lefebvre, EthiFinance, NewCap, and OCTO Finances.

Since its inaugural edition in 2016, the Paris Private Bond

has grown significantly: the number of participants has increased, the event has become more international, all with the same objective of facilitating meetings between issuers and private debt investors. To date, more than 800 meetings have been organized.

During this edition, the main issues discussed revolved around the development of Euro PP green bonds and the impacts of the current macroeconomic context on the returns expected by investors.

Sustainable Finance: The Development of Euro PP Green Bonds or Sustainability-Linked Bonds

With the rise of sustainable finance, the market for green and social bonds

has experienced significant growth, demonstrating the enthusiasm of both issuers and investors. Indeed, an increasing number of companies are integrating ESG elements into their financing, adopting a proactive approach that grants them access to a broader pool of investors. This is particularly true in the bond market, where several hundred billion euros have been raised across two major categories of debt: use-of-proceeds bonds (Green Bonds and Social Bonds) and, more recently, sustainability-linked bonds (Sustainability-Linked Bonds).

This special day highlighted the opportunities presented by these sustainable financings through the presentation of the two main categories of bonds, the definition of principles and guidelines, and a reminder of European regulations and labels.

Macroeconomic Context: What Impacts on Returns Demanded by Investors?

Inflation, changes in government borrowing rates, and a rapidly evolving economic, political, and social landscape have created a unique context for the credit market, raising numerous questions among investors regarding the consequences of these phenomena on financial markets (recession risks, liquidity constraints).

This event thus focused on a pressing issue that captures everyone's attention: the macroeconomic context and its impact on the returns expected by investors.

According to Edouard Narboux, CEO and co-founder of Aether Financial Services, “This 5^th edition of the Paris Private Bond has been a great success in a context quite different from that of the last edition. At that time, we were still in a rather positive dynamic with more issuances. It is clear that over the past six to twelve months, the Euro PP market has indeed been quieter. This can be attributed firstly to the return of banks that have come to compete with the instrument. Secondly, there are restructuring issues related to transactions that were issued in previous years. Nevertheless, demand remains strong, and companies still need capital. This reinforces the legitimacy and importance of the Paris Private Bond, which serves as a genuine meeting point for investors and issuers.”