French bank BNP Paribas has launched an inaugural €500 million (£500m) green bond.

The transaction has attracted strong demand from investors, according to the bank.

The bond will be used for renewables, energy efficiency, transport, water management and treatment and recycling projects.

The bank claims it has played “an active role” in the development of the green bond market as it has managed more than €5.8 billion (£4.93m) up to date.

It added it has doubled its exposure to the renewable sector – from €7.2 billion (£6.12bn) in 2015 to €15 billion (£12.75bn) in 2020.

Michel Konczaty, Deputy Chief Operating Officer said: “The launch of our inaugural green bond today amplifies our commitment to sustainability and to supporting projects which have a positive impact. We look forward to working together in continuing to deliver market based sustainable solutions which help us and our clients meet social and environmental challenges.”