Enel Finance International has launched a single-tranche sustainability-linked bond for institutional investors priced at £500m (€550m), which includes performance indicators linked to renewables.
The issue, which is guaranteed by Enel, was oversubscribed by almost six times, with total orders of approximately £3bn, the company said.
Enel said the bond allows it to continue to diversify its investor base, with the funds raised to meet the group’s ordinary financing needs.
The issuance follows the adoption by Enel of a ‘Sustainability-Linked Financing Framework’.
The company said that in line with the framework the bond is linked to the key performance indicator of ‘Renewable Installed Capacity Percentage’, the percentage of consolidated renewable installed capacity on total consolidated installed capacity.
The bond is also related to the achievement of a Sustainability Performance Target equal to or greater than 60% by 31 December 2022.
Enel said that as of 30 June 2020, the figure was equal to 51.9%.
To ensure the transparency of the results, the achievement of the target will be certified by a specific assurance report issued by an auditor engaged for this purpose.
The bond pays a rate of 1.000% maturing on 20 October 2027.
The issue price has been set at 99.747% and the effective yield at maturity is equal to 1.038%.
The settlement date for the issue is 20 October 2020.
The issue is expected to be listed on the regulated market of the Irish Stock Exchange and on the multilateral trading facility ExtraMOT PRO organised and managed by Borsa Italiana.