The StopEACOP coalition expressed concern over the issuance of a €1.5 billion bond for TotalEnergies by banks that had publicly distanced themselves from the controversial East African Crude Oil Pipeline (EACOP). The EACOP project has faced significant delays due to public pressure from coalition supporters and members who have highlighted the risks the project poses to financial institutions. According to StopEACOP, all the banks that have participated in the issuance of the bond are among the more than 40 global banks that refused to finance the controversial project. Société Générale, HSBC, Intesa Sanpaolo, J.P. Morgan, and Mizuho and BBVA publicly distanced themselves from EACOP. The StopEACOP coalition stated that TotalEnergies and other project backers have struggled to raise funds and have been forced to look internally, as reported in the latest risk brief from BankTrack.

The coalition further alleges that the new €1.5 billion bond to TotalEnergies provides the company with internal funds to complete the project. “These banks want the PR benefit of saying that they won’t finance EACOP while quietly keeping TotalEnergies liquid through bond purchases. That’s effectively back-door pipeline funding dressed up in sustainability language. Finance capital is doing what it always does by protecting returns first, then hiring glossy reports to wash the oil and blood from the balance sheet,” said StopEACOP Campaign Coordinator, Zaki Mamdoo. He added that bonds are the most straightforward way for TotalEnergies to self-finance the project because they come with no strings attached and can be diverted to any projects that banks would not publicly support or associate with, including EACOP or the other highly controversial Mozambique LNG project, for which TotalEnergies is facing allegations of complicity in war crimes, torture, and enforced disappearances. “The coalition cannot understand how these banks justify their involvement in issuing these bonds to TotalEnergies when they are aware that these funds could be diverted to projects they have publicly stated they do not support, citing reasons ranging from ‘extreme risks to communities’ along the pipeline route to ‘unacceptable risks’ to critical natural habitats, with a specific focus on human rights and climate impact?” Mamdoo stated.

BBVA responded to our invitation by stating the company is not involved in the financing of EACOP. A full statement from the company can be found below. J.P. Morgan, Société Générale, HSBC, Intesa Sanpaolo and Mizuho did not respond to our invitation