Enel Finance International N.V. ("EFI"), a financial company controlled by Enel S.p.A. ("Enel" or "the Company"), has launched a Eurobond "Sustainability-Linked bond" in two tranches targeting institutional investors for a total of 1.75 billion euros. "The outcome of the placement confirms the positive market response to the 2024-2026 Strategic Plan and its focus on financial discipline, aimed at increasing return on invested capital and improving the Company's credit profile," commented Stefano De Angelis, CFO of the Enel Group.
"In order to meet the significant investor interest, the placement amount has been increased from the initial amount. In line with the Group's strategic priorities, we will continue to work tirelessly to achieve the financial goals and greenhouse gas emissions reduction targets communicated to the market, in order to create long-term value for all our stakeholders." The issuance, guaranteed by Enel, received requests over 3 times the offer, totaling orders for approximately 5.8 billion euros and a significant participation of socially responsible investors (SRI). It is expected that the proceeds from the issuance will be used by EFI to refinance the Group's ordinary debt maturing.
The new issuance includes the use of two Sustainability Key Performance Indicators ("KPIs") for each tranche, outlined in the Sustainability-Linked Financing Framework, last updated in January 2024, reaffirming Enel's commitment to the energy transition and contributing to the environmental and financial sustainability of the Company's development strategy. The Framework is in line with the International Capital Market Association's ("ICMA") Sustainability-Linked Bond Principles and the Loan Market Association's ("LMA") Sustainability-Linked Loan Principles, as certified by Second-Party Opinion Provider Moody's Investors Service. The issuance, with an average duration of approximately 8 years, has an average coupon of 3.66%.
Further information regarding the guiding principles of the bond issuance, the Framework, and the related Second-Party Opinion provided by Moody's Investors Service are available to the public on Enel's website at: [link]. The bond loan is expected to be listed, at the time of issuance, on the regulated market Euronext Dublin.
In line with the 2024-2026 Strategic Plan, the new Sustainability-Linked Bond contributes to the achievement of the Group's objectives related to the ratio between sustainable financing sources and the Group's total gross debt, set at approximately 70% in 2026. The operation was supported by a consortium of banks in which Banca Akros, Barclays, BBVA, BNP Paribas, BPER Banca, Crédit Agricole CIB, Deutsche Bank, Goldman Sachs, IMI-Intesa Sanpaolo, J.P. Morgan, Natixis, Santander, Société Générale, and UniCredit acted as joint bookrunners.
___________________________ 1 Enel Rating: BBB (Stable) by Standard & Poor's, Baa1 (Negative) by Moody's, and BBB+ (Stable) by Fitch.
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