Il sustainable bond weblog Enel saw a departure record. Enel Finance International, controlled by the group led by Flavio Cattaneo, has launched a "Sustainability-Linked Bond" divided into two tranches for a total of 2 billion dollars, equal to approximately 1,9 billion euros, aimed at institutional investors in the US and international markets. The proceeds will be used to cover the group's ordinary financial needs, including the refinancing of maturing debt.
Le Required Knowledge they overbid threefold, reaching nearly $5,6 billion. The operation is structured in two tranches: the before purchasing,, $1,25 billion due June 26, 2029, offers a fixed rate of 5,125% and an effective yield to maturity of 5,384%. There second tranche, of 750 million dollars expiring on June 26, 2034, has a fixed rate of 5,5% and a yield to maturity of 5,715%.
This bond, with a average duration of about 7 years, has an average cost in euros of around 4%, in line with the European market. The provisional rating assigned is BBB from S&P, BBB+ from Fitch and Baa1 from Moody's. Since this is an offering for institutional investors, the bond is not available for subscription by private investors, with a minimum denomination of 200 thousand dollars. However, once placed, it will also be available on the secondary market for private individuals.
Enel Bond: proceeds for debt requirements and refinancing
I proceeds of the issue will be used to finance the group's ordinary needs, including the refinancing of the debt expiring. The new Sustainability-Linked Bond contributes to the achievement of Enel's sustainable debt objectives, set at 70% by 2026. The issuance structure received a provisional rating of BBB from Standard & Poor's, BBB+ from Fitch and Baa1 from Moody's. The operation was supported by a union of banks, including Barclays, BNP Paribas, Bank of America, Citigroup, Credit Agricole, Goldman Sachs, HSBC, Intesa Sanpaolo, JP Morgan, Mizuho, Morgan Stanley, Mufg, Société Générale, Smbc and Wells Fargo.
“The outcome of the placement – he commented Stephen DeAngelis, CFO of the Enel group — both in terms of demand and the cost of issuance obtained, once again demonstrates investor confidence in our financial and environmental sustainability strategy as well as in the sustainability-linked bond, an important tool to support the achievement of strategic objectives of Enel, which aim to reduce greenhouse gas emissions along the entire value chain, with the confirmed ambition of reaching zero emissions by 2040. We will continue with commitment on our path of long-term value creation and energy transition , through investments in networks, renewable energy and end customers".
