AXA IM Alts, the alternatives investment management arm of AXA Investment Managers, has raised €500 million through a new green bond issuance for its flagship logistics vehicle, AXA Logistics Europe Master, to demonstrate a strong investor appetite for sustainable real estate strategies. According to the company, the issuance was oversubscribed by more than six times as it attracted more than €3.1 billion in orders.
Proceeds to Fund Decarbonisation and Renewables
The bond’s proceeds will be used for the acquisition of logistics assets that have advanced sustainability features, as well as for the funding of capital expenditure programs aimed at the decarbonisation of the fund’s existing portfolio. The planned investments include energy efficiency measures, occupant wellbeing improvements, and biodiversity promotion, as well as the installation of renewable energies, in particular the installation of rooftop solar photovoltaic (PV) systems on assets.
Second Green Bond Under ICMA Framework
This deal is the second green bond issuance for the strategy, after the inaugural transaction in 2021. The bond was issued under the AXA Logistics Europe Green Finance Framework, which is in line with the voluntary Green Bond Principles of the International Capital Market Association (ICMA). These principles offer widely recognised standards to ensure transparency and fairness in the green bond market, thus investor confidence in the environmental impact of the funding is reinforced.
Fund Holds Pan-European Logistics Portfolio
AXA Logistics Europe Master manages a pan-European portfolio that is concentrated on modern big-box distribution centres and last-mile logistics assets that are situated in supply-constrained urban and regional hubs. These places benefit from strong e-commerce growth, resilient tenant demand, and limited new development, which, in turn, help to stabilize long-term income. Besides, the fund is currently reporting a 96% occupancy rate and ongoing rental reversion potential, which is facilitated by AXA IM Alts’ wider real estate operating platform.
Management Highlights Portfolio Quality
In reference to the deal, Timothé Rauly, global co-head of real estate at AXA IM Alts, stated that the massive demand was a testimony to the strength and quality of the portfolio. “The exceptionally strong demand for this new green bond, which has been more than six times oversubscribed, is a clear signal that the quality of the portfolio our team has carefully put together for AXA Logistics Europe is highly appreciated. Since the very beginning of the company in 2019, we have worked hard creating the best portfolio for AXA Logistics Europe,” he said.
Logistics Remains a Highly Attractive Sector
This successful fundraise takes place when logistics real estate is still one of the most attractive property sectors in Europe and accounts for most of the demand in the continent. The continued expansion of e-commerce, supply chain reconfiguration, and urbanisation are structural trends that drive this sector. However, investors are also increasingly focusing on assets that have good environmental, social and governance (ESG) credentials, especially with the tightening of regulations on building performance and carbon emissions.
Green Financing Supports Climate Goals
AXA IM Alts’ new green bond is just one of the many steps that green financing instruments need to take to play a major role in the transition of real assets to lower-carbon operations. By setting aside money specifically for decarbonisation, renewable energy deployment and sustainability upgrades, the company intends first to equip its logistics platform for the future and, secondly, to be in line with wider European climate goals.
BNP Paribas Acquisition Strengthens Platform
The news comes after a significant corporate change for the group. AXA Investment Managers became part of the BNP Paribas Group on 1 July 2025, following the closing of its acquisition. After the takeover by BNP Paribas, AXA IM Alts is likely to keep on growing its worldwide presence in the alternatives space in real estate, infrastructure, private debt and natural capital besides the other sectors she is presently involved in.
Investor Confidence in High-Quality Green Assets
Even though there is market volatility in general and a debate ongoing around the credibility of green bonds in certain markets, the strong reaction to the AXA IM Alts’ issuance is an indication that green real estate strategies that are of high quality and transparent are still able to attract deep investor support, especially in sectors that are resilient such as European logistics.
