To finance the reimbursement of its outstanding debt and its budgetary gap, Wallonia borrows on the financial markets by mainly using two types of financial instruments:
- Private placements offered by partner banks, for their own account or that of institutional investors (insurers, pension funds, asset managers, etc.);
- Benchmark size issues.
With regards to benchmark size bond issues, Wallonia decided in 2019 to launch sustainable bond issues (green and social) to finance part of its debt. These are bonds that meet specific standards and are mainly subscribed to by investors seeking ESG investments (for Environment - Social - Governance).
Wallonia's objective is to be a recurring player in the market of SSA issuers (Sovereign, Sub-sovereign & Agency) and to adopt best practices, both in terms of documentation of its financing operations and in terms of production of high quality budget allocation and impact reports for investors.