CDP launches the first repurchase agreement linked to sustainability objectives, 'Sustainability-Linked Repo'.
Sustainability-Linked Repo: the details of the operation
In collaboration with Bnp Paribas, Cdp has defined the terms of the "Sustainability-Linked Repo", a collection tool in which the achievement of certain sustainability targets by CDP affects the financial terms of the operation.
In particular, with this medium-term transaction, CDP gets a loan from Bnp Paribas during which it undertakes to improve its opinion on the environmental, social and governance profile issued by specialized ESG rating agencies.
In the event of failure to reach the predefined minimum rating levels, CDP will have to pay a "Sustainability Award” to BNP Paribas, which in turn will allocate this premium to the financing of forestation projects and other initiatives, based in Italy, which aim to promote environmental sustainability and biodiversity and to counter the effects of climate change.
“The operation is in line with the priorities identified by the 2022-2024 Strategic Plan and confirms the leading role played by CDP in the field of sustainable finance in Italy, consolidated by the numerous ESG bond issues launched starting from 2017 as part of its Green, Social and Sustainability Bond Framework", underlines the company in a note .
