French non-profit Reclaim Finance has identified the investors who participated in oil and gas major TotalEnergies’ latest US$4.25 billion bond issuance. By financing TotalEnergies this way, the investors – who included BlackRock, Vanguard and BNP Paribas – helped the company finance the development of new oil and gas projects on a very long-term basis (until 2064), which is incompatible with limiting global warming to 1.5°C, Reclaim Finance argued. The three-bond issuance was completed in April, and is the company’s largest since 2019, having been backed by at least 80 investors. TotalEnergies currently has plans to develop new oil and gas projects in 53 countries, including Mozambique, Papua New Guinea and South Africa. Bonds accounted for 70% of TotalEnergies’ financing sources between 2016-23. “While banks assist the company in issuing the bond, it is investors who purchase the bonds, providing TotalEnergies with fresh capital,” Reclaim Finance said. “Their new bond purchasers are turning a blind eye to the need to end support for fossil-fuel expansion and sanction companies that pursue activities incompatible with [the goals of the Paris Agreement].” TotalEnergies has also been issuing bonds with increasingly long maturities, with an average of 22 years between 2020-24, compared to six years between 2000-04. “Investors in TotalEnergies’ bonds are actively betting against the transition,” Reclaim Finance added.
