Enel has placed 1,25 billion euros with a green bond, i.e. a bond to finance projects on renewables and clean technologies. According to what has been learned, requests for the 7-year bond amounted to approximately 2,9 billion euros in total. The bond, placed at 70 basis points above the midswap rate against initial indications of 85-90 basis points, will pay an annual coupon of 1%. The deadline is September 2024.
The placement operation involved 11 banks in the role of bookrunners: Banca Imi, Bank of America Merrill Lynch, Credit Agricole Cib, Citi, Deutsche Bank, HSBC, JP Morgan, Mizuho, Natixis, Smbc Nikko and Unicredit.
Enel specifies that repayment is envisaged in a single installment upon maturity on September 16, 2024 and the payment of a fixed-rate coupon of 1%, payable annually in arrears in September, starting from September 2017. The issue price was set at 99,001% and the effective yield at maturity is 1,137%.
The expected date for the settlement of the issue, Enel adds, is January 16, 2017 and it is expected that the green bond will be listed on the regulated market of the Irish Stock Exchange and on the regulated market of the Luxembourg Stock Exchange and that it will be assigned a rating in line with that of Enel.
The operation, continues the note, has attracted subscriptions for an amount of around 3 billion euros, with a significant participation of Socially Responsible Investors (SRI) which allows the Enel group to further diversify its investor base. The net proceeds of the issue will be used to finance the so-called eligible green projects of the Enel Group identified and/or to be identified.
In particular, the note recalls, the category of eligible green projects includes, by way of example, projects for the development, construction and repowering of generation plants from renewable sources; development of transmission and distribution networks, as well as the implementation of smart grids and smart meters.
The operation, adds the note, is in line with the group's financial strategy outlined in the 2017-2019 strategic plan, which envisages the refinancing of 12,4 billion euros also through the issue of green bonds as instruments dedicated to financing projects functional to the transition towards the "low carbon economy".
