Enel has signed its first revolving credit line with Unicredit linked to the achievement of the UN Sustainable Development Goals. In detail it is about an “SDG-Linked” loan agreement of 1 billion euro. The expected duration is 5 years.
The transaction "is intended to meet Enel's ordinary financial needs and is linked to the group's ability to reach, as at December 31, 2021, a percentage of installed capacity from renewable sources on a consolidated basis equal to or greater than 55% of the consolidated total installed capacity. As of June 30, 2019, this percentage is already 45,9%”, explains the company in a note.
Based on the achievement of this objective by the set date, the line provides an increase/decrease mechanism (step up/step down) which will affect the interest margin applied in case of use of the line and the non-use commission.
This new line of credit, together with the bond issuance program launched in September, aims to develop sources of sustainable financing of the company led by Francesco Starace with the aim of creating value through the integration of the SDGs in the group business model.
“With this innovative credit line, we continue along our path of sustainable finance, linked to the achievement of the Group's decarbonisation targets, in line with the United Nations Sustainable Development Goals,” commented Albert DePaoli, CFO of Enel. “The spread of financial instruments that reward responsible behavior from an environmental point of view represents further confirmation of the validity of the equation that links sustainability to the creation of value. Instruments of this type will be increasingly used in the execution of the Group's financing strategy.”
