Enel, through its subsidiary Enel Finance International, has launched a "Sustainability-Linked bonds” multi-tranche. The placement is aimed at institutional investors for a total of 3,25 billion euros.
The issue, explains the company led by Francesco Starace in a note, is linked to the achievement of Enel's sustainability objective relating to the reduction of direct greenhouse gas emissions, “contributing to the United Nations Sustainable Development Goal 13 (Fight against climate change) and in line with the group's Sustainability-Linked Financing Framework”.
This is the third operation of this type after the "Sustainability-Linked Bonds" issued by Enel Finance International in 2019 in US dollars and euros and the first "Sustainability-Linked Bonds" issued in 2020 on the market in sterling.
The issue launched today by also represents “the largest “Sustainability-Linked” operation never performed in the fixed income capital markets”, underlines Enel.
The bond was oversubscribed 3,5 times, with total orders reached an amount of approximately 11,3 billion euros and a significant participation of Socially Responsible Investors (SRI). At the same time, EFI launched a non-binding voluntary public offer for the repurchase of four series of bonds outstanding conventional loans, for a total maximum target amount of 1 billion euros, accelerating the achievement of the group objectives linked to the relationship between the sources of sustainable financing and the total gross debt of the group itself.
“The launch of the largest ever 'Sustainability-Linked' operation marks a new, important milestone since Enel's innovative bond issues kick-started the global Sustainability-Linked bond market in 2019, a market that continues to grow at an exponential pace, involving a variety of industrial sectors and geographies, and which is now a consolidated tool of sustainable finance, increasingly common in the capital markets - commented Alberto De Paoli, CFO of Enel -. With the transactions we are announcing today, through which we are buying back outstanding conventional bonds, while issuing new 'Sustainability-Linked Bonds', we reflect in finance our commitment to accelerate the energy transition”.
