Enel inks ‘world-first SDG-linked’ bond
Since 11 months

Enel has issued what it claims is the first bond to link its coupon to the company’s achievement of a renewable energy generation target in line with the UN Sustainable Development Goals (SDGs).

The company will use the proceeds from the $1.5 billion, five-year issuance for general corporate purposes.
However, the coupon it pays investors will increase by 25 basis points if Enel does not achieve, by 31 December 2021, a percentage of installed renewable generation capacity equal to or greater than 55% of total consolidated installed capacity. It will mandate an auditor to provide an assurance report to verify whether it has achieved the target. As of 30 June, the figure already stood at 45.9%.

Enel said working toward the target would demonstrate its contribution to SDG 7 (Affordable and clean energy).
Tanguy Claquin head of sustainable banking at Crédit Agricole, said the structure is simpler than that of a green bond, because the issuer does not need to identify eligible assets, prepare a second opinion report, a green bond framework or report on set of assets. This structure has potential to be replicated by any type of company – any company would usually have a strategy to manage the transition to a low-carbon economy and would have a metric that is both core business and reecting how this transition is happening.

The Development Bank of Minas Gerais (BDMG) is preparing to raise about $100 million in green bonds, with support from the Inter-American Development Bank (IDB)
The BDMG presents on Tuesday a framework, document that details the the scope of companies or projects that can be targeted for funding, a preview of the funding itself, which should be released in the coming months. ...
Since 2 weeks Read More
BNDES Energy Efficiency Fund will receive a contribution of R$30million from the Procel
Resources reduce the risk of default assumed by lenders FGEnergia should leverage with a guarantee R$ 200 million to projects in the country.
Since 3 weeks Read More
Rocky Mountain Institute partners with top banks to deliver new Center for Climate-Aligned Finance
Four of the world’s largest banks – Wells Fargo, Goldman Sachs, JPMorgan Chase, and Bank of America – have teamed up with leading US environmental non-profit The Rocky Mountain Institute (RMI) to launch a new Center f...
Since 3 weeks Read More