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Enel targets clean energy and climate action with €2.5bn SDG-linked bond
(Business Green, 11 Oct 2019) Italian gas and power giant places its first bond on the European market linked to two of the UN's Sustainable Development Goals.
Italian gas and electricity giant Enel has placed its first 'general purpose' sustainability bond on the European market, with a multi-tranche issue of €2.5bn targeted specifically at boosting clean, affordable energy, and climate action, it announced yesterday.
The bond is linked to two of the UN's Sustainable Development Goals (SDG): SDG7 on ensuring clean and affordable energy for all, and SDG13 on taking urgent action to combat climate change.
Under the terms of the bond, Enel is aiming to ensure 55 per cent of its electricity generation capacity comes from renewables by the end of 2021, with the figure currently at just under 46 per cent.
Moreover, the bond is linked to the firm's Science-Based Target to cut its greenhouse gas emissions by 70 per cent by 2030 compared to 2017, including a goal to reach 125g of CO2 per kWh of energy generated.
Almost four times oversubscribed with total orders of about €8.5bn, the issuance was placed on the market by Enel's international finance arm. It is expected to be listed on the Irish Stock Exchange and will enable Enel Group to continue to diversify its investor base, the company said.
Enel CFO Alberto De Paoli said the strong demand for the bond issued yesterday confirmed investor appetite for the company's sustainability strategy and reflected the firm's push towards increasingly sustainable finance.
Business Green, 11 Oct 2019: Enel targets clean energy and climate action with €2.5bn SDG-linked bond
