Reclaim Finance dives into TotalEnergies’ financing strategy. While bonds, a type of product issued on the financial markets, account for more than two-thirds of TotalEnergies’ external financing in recent years, this briefing analyzes the two bonds issued in 2024 by the company. It alerts us to the changing profile of these bonds and in particular their abnormally long maturities. It also looks at the consequences of this type of financing for the climate and people, and highlights a risky gamble for the financial institutions who offer TotalEnergies support stretching over several decades.

Key findings:

TotalEnergies successfully issues bonds that will last until… 2064.

• In 2024, TotalEnergies raised $7.25 billion through bond issues, with the support of Société Générale and Banque Populaire Caisse d’Epargne. What these transactions have in common is their increasingly long maturities – up to 40 years!

• By helping TotalEnergies to raise money via bonds, banks and investors are enabling the company to pursue its strategy of oil and gas expansion, which is disastrous for the climate and people. The amounts raised can be used freely by the company, in particular to support the development of oil and gas projects – projects that fewer and fewer banks are willing to finance directly.
• Participating in these increasingly long-dated bonds is a risky gamble for financial institutions. Such financing increases systemic climate-related risks – risks which are already jeopardizing the future of the oil and gas sector, and therefore the value of its assets, which could turn into stranded assets.

Reclaim Finance calls on banks and investors to react by committing to no longer participate in the issue and purchase of new TotalEnergies bonds, and to put an end to all financial services for companies developing new oil and gas projects.

You can read the full report here.