PARIS: Societe Generale avoided a costly and potentially embarrassing court case on Thursday by agreeing to pay nearly €1 billion ($1.1 billion) to settle a long-running dispute with the Libyan Investment Authority (LIA).
France’s second-biggest listed bank reached an 11th-hour settlement over LIA allegations that trades were secured as part of a “fraudulent and corrupt scheme” involving the payment of $58.5 million by SocGen to a Panamanian-registered company.
“By settling this dispute ... we avoid a long trial that would have demanded a lot of resources,” SocGen CEO Frederic Oudea told journalists on a results call, adding that the bank was now able to concentrate its energy on its main businesses.
A spokesman in Paris said SocGen was paying 963 million euros as part of the Libya settlement, which overshadowed a fall of 19 percent in SocGen’s first-quarter net income to 747 million euros which it posted on Thursday.
Asked if SocGen had taken any sanctions against employees or if any of its staff had left the bank as a result of the case, Oudea said “appropriate measures” had and would be taken, while SocGen added that it had apologized to the LIA.
The Libyan fund lost a high-profile case last summer against Goldman Sachs in which it tried to claw back $1.2 billion from the Wall Street firm relating to nine equity derivatives investments carried out in 2008.
The settlement also marks the end of proceedings against Libyan businessman Walid Giahmi who controlled Lenaida, the Panamanian-registered company alleged to have been paid by SocGen, which was dissolved in 2010.
“This is a complete exoneration of my client, who has been subject to serious allegations involving bribery and intimidation for the past three years,” Giahmi’s lawyer, Kathryn Garbett, head of fraud defense at Mishcon de Reya, said, adding that her client was relieved the case was over.
While significant, the Libyan settlement does not mark the end of SocGen’s legal woes, with the bank still in talks with US authorities over dollar transfers it made on behalf of entities based in countries subject to economic sanctions.
Oudea, who is seeking to turn the page following a series of legal disputes and scandals so that he can focus on a new strategic plan under a new management structure, said those discussions would continue for at least several months.
“Among French banks, SocGen is the only one that does not seem to be able to get rid of recurring reputational problems,” analysts at Kepler Cheuvreux, who kept a “buy” rating on SocGen, said.
SocGen shares were down 0.4 percent at 1030 GMT following the results, which came a day after BNP Paribas, France’s biggest bank by market capitalization, beat forecasts with higher first-quarter profits.
SocGen to pay $1.1 billion to end Libyan wealth fund row
SocGen to pay $1.1 billion to end Libyan wealth fund row
ESG sukuk set to exceed $70bn by 2026 end: Fitch
RIYADH: The global market for environmental, social and governance sukuk is on track to exceed $70 billion in outstanding value by the end of 2026, supported by refinancing needs, funding diversification and sustainability mandates, according to Fitch Ratings.
Momentum in ESG sukuk issuance is expected to continue as net-zero targets, the prospect of lower interest rates and oil prices, and expanding regulatory frameworks encourage issuers across emerging markets, the ratings agency said in a report published this month.
ESG sukuk are structured to finance environmentally and socially sustainable projects, including renewable energy, clean transportation and climate-resilient infrastructure.
Earlier this month, a separate report by S&P Global set out similar views, noting that ESG sukuk issuance is set to accelerate as Gulf Cooperation Council countries step up climate transition efforts and roll out incentives for sustainable practices.
Commenting on the Fitch report, Bashar Al-Natoor, global head of Islamic finance at the agency, said: “We expect ESG sukuk to maintain its solid momentum into 2026, supported by sustainability mandates, net-zero targets, new frameworks, robust demand, along with the upcoming Turkiye-hosted COP31.”
He added: “While evolving Shariah and ESG requirements, geopolitical tensions and greenwashing remain key risks, the credit profile is robust: 92 percent of rated ESG sukuk are investment grade, all issuers have Stable Outlooks, and there have been no defaults.”
According to Fitch, ESG sukuk accounted for around 40 percent of emerging-market ESG debt issuance in US dollar terms in 2025, up from 18 percent in 2024.
Global ESG sukuk issuance rose more than 60 percent year on year to $18.5 billion in 2025, with Saudi Arabia accounting for 33 percent of the total.
Malaysia followed with a 28 percent share, while the UAE and Indonesia accounted for 19 percent and 9 percent, respectively.
Outstanding ESG sukuk reached $58 billion at the end of 2025, representing a 30 percent year-on-year increase.
The report noted that social sukuk are also gaining traction globally, alongside sustainability-linked, orange and climate sukuk.
Recent developments include Pakistan issuing its first sovereign green sukuk and Oman Electricity Transmission Co. SAOC launching Oman’s first ESG sukuk.
Highlighting regulatory progress, Fitch said Malaysia has granted tax exemptions for Sustainable and Responsible Investment sukuk under its income tax rules.
“Saudi Arabia’s Capital Market Authority issued guidelines for green, social, sustainable and sustainability-linked debt, while Qatar’s central bank launched a Sustainable Finance Framework. In addition, the UAE’s central bank has begun developing a Sustainable Islamic M-Bills program,” the agency said.
