Enel and Inwit launch two important bond issues. The electric group placed a “sustainability-linked bond" from 500 million pounds, with maturity of seven years. The requests they exceeded the offer by six times, reaching the quota three billion. The operation, carried out through the subsidiary incorporated under Dutch law Enel Finance International, is the first of its kind for the sterling market.
The bond is structured in a single tranche and foresees an interest rate of 1,000%. The issue price was set at 99,747% e the effective yield at maturity is equal to 1,038%. The settlement date is the 20 October 2020.
The output is "linked to the achievement of Enel's sustainability objective – explains the group in a note – relating to the percentage of installed capacity consolidated by renewables compared to the total consolidated installed capacity, in line with the commitment to achieve the United Nations Sustainable Development Goals (SDGs).
The interest rate "will remain unchanged until the maturity of the bond loan against the achievement of the Sustainability Performance Target on December 31, 2022 - continues the note - In the event of failure to achieve this target, a step up mechanism will be applied with an increase of 25 bps of the interest rate, starting from the first interest period following the publication date of the auditor's assurance report”.
The proceeds will be used for "the ordinary financial needs of the group", continues Enel, underlining that the bond "follows the adoption by Enel of a"Sustainability-Linked Financing Framework”, the first worldwide document that presents the entire “Sustainability-Linked” financial strategy through multiple financing solutions (commercial papers, loans and bond issues), integrating sustainability into the group's global financing plan”.
The bond, which comes after two previous "SDG-Linked" bond issues by EFI placed on the European and US markets, will be listed on the Irish Stock Exchange and on the multilateral trading system "ExtraMOT PRO" organized and managed by Borsa Italiana.
Also Inwit, the company of the Telecom Italia and Vodafone towers, has returned to the bond market, launching – later the July bond - a second issue of 750 million euro. Demand exceeded supply four times, reaching over three billion euros. More than 300 investors were involved. The bond is at a fixed rate with a coupon of 1,625% and a maturity of eight years.
“The success of the new bond issue – said Giovanni Ferigo, Inwit's chief executive officer – once again demonstrates the markets' confidence in our company. The excellent quality and number of orders allow us to extend the duration of our debt and optimize its cost and represent a new recognition of the solidity of our business and industrial design in accelerating the country's digitization process".
