Enel issues USD-1.5bn SDG-linked bond

Italian energy group Enel SpA (BIT:ENEL) launched on Thursday a single-tranche USD-1.5-billion (EUR 1.4bn) bond in the US market linking the issuance to the UN Sustainable Development Goals (SDGs).

The bond attracted roughly USD 4 billion in total orders, including from Socially Responsible Investors (SRI).

The proceeds will be used for Enel’s ordinary financing needs in pursuit of goals related to affordable and clean energy (SDG 7), industry, innovation and infrastructure (SDG 9), sustainable cities and communities (SDG 11) and climate action (SDG 13).

The five-year bond, maturing in September 2024, will pay an interest of 2.650%. Enel said that the interest rate would remain unchanged to maturity unless the company fails to reach its target for a renewables share of 55% or more in total consolidated installed capacity by December 31, 2021. If the target is missed, the interest rate will increase by 25 basis points.

The achievement of the target will be certified by a specially appointed auditor.

As of June 30, 2019, the proportion of renewable energy capacity on a consolidated basis in Enel’s total installed capacity was 45.9%, according to the company.

To implement the four SDGs, Enel plans to install over 11.6 GW of additional capacity and more than 46.9 million smart metres, and make investments in innovation, digitalisation and charging points for electric mobility, among others.

(USD 1.0 = EUR 0.91)

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