Listen to the audio version of the article
Enel Finance International, a financial company controlled by Enel, has launched a multi-tranche “Sustainability-Linked Bond” aimed at institutional investors in the US and international markets for a total amount of 2 billion dollars, equivalent to approximately 1.9 billion euros . The issue, guaranteed by Enel, received oversubscriptions approximately 3 times, totaling total orders for an amount of approximately 5.6 billion dollars.
«The outcome of the placement – commented Stefano De Angelis, CFO of the Enel group – both in terms of demand and of the issue cost obtained demonstrates once again the investors’ confidence in our financial and environmental sustainability strategy as well as in the sustainability-linked bond, an important tool to support the achievement of Enel’s strategic objectives, which aim to reduce greenhouse gas emissions along the entire value chain, with the confirmed ambition of reaching zero emissions by 2040. We will continue with commitment on our long-term value creation journey period and energy transition, through investments in networks, renewable energy and end customers”.
The proceeds from the issue are expected to be used to finance the group’s routine needs, including the refinancing of maturing debt.
Features
The issue is linked, explains a note, to the achievement of Enel’s sustainability objective relating to reduction of the intensity of Ghg Scope 1 emissions related to electricity production, contributing to the United Nations’ sustainable development goal 13 (fight against climate change) and is in line with the group’s sustainability-linked financing framework, most recently updated last January, confirming Enel’s commitment to financial and environmental sustainability.
The issuance is structured in two tranches, linked to the Key performance indicator of the intensity of Ghg Scope 1 emissions relating to the production of electricity at group level, measured in grams of CO2eq per kWh. In particular, it is a first tranche of 1,250 million dollars at a fixed interest rate of 5.125%, with a settlement date set at 26 June 2024 and expiring on 26 June 2029.
