Italian issuers race to debt markets as economy recovers

Enel marks another pioneering milestone in SLB market

Italy-based multinational energy group Enel S.p.A. continues to break records with their commitment to developing the sustainable finance sector. On 7 July, the company issued a $4 billion SLB, the world’s largest SLB from a corporate issuer so far, and the second largest sustainable issuance from a corporate this year. This surpasses the former record Enel set in early June for their €3.25bn EUR triple tranche SLB. Enel hedged the currency and interest rate risks on its $4bn SLB via a Sustainability-Linked Cross Currency Swap.

“We are firmly convinced that Sustainability-Linked finance will drive the enhancement of sustainable capital markets in the upcoming years, placing SDG-linked targets and financial value at the core of its structure, progressively replacing conventional debt,” Enel CFO Alberto De Paoli in a statement.

Enel has seen great progress in their sustainability strategy and implementation. So much so, that they have reset their decarbonisation ambition for 2030. Enel is the first issuer to have improved their KPIs on their SLBs and placed a more ambitious target on new issuances compared with older issuances, demonstrating their desire to bring investors along on their journey to accelerate the transition.

“BNP Paribas has committed to gradually aligning its greenhouse gas emissions arising from their credit and investment for own account activities with the path required to achieve carbon neutrality in 2050, joining the Net-Zero Banking Alliance. We began by disengaging from the most polluting activities like unconventional hydrocarbons or coal and setting ourselves very ambitious targets for supporting green energies and technologies. We are delighted to support our clients like Enel who have ambitious and rigorous environmental commitments,” said Yann Gérardin, Group COO and Head of Corporate & Institutional Banking, BNP Paribas.