Shearman And Sterling

News July 20, 2022

ENEL’s $3.5 Billion Sustainability-Linked Bond Multi-Tranche Offering

Enel Finance International N.V. (EFI), the Dutch-registered finance company controlled by Enel S.p.A., launched a multi-tranche sustainability-linked bond for institutional investors in the US and international markets totaling $3.5 billion, equivalent to about €3.3 billion. The bond is linked to the achievement of Enel’s sustainability objectives relating to the reduction of direct greenhouse gas emissions (Scope 1), contributing to United Nations Sustainable Development Goal (SDG) 13 (Climate Action) and in accordance with the Group’s Sustainability-Linked Financing Framework. For the first time ever for a multinational energy group, a bond is linked to a trajectory towards full decarbonization, with the 30-year tranche of this issuance being linked to the Group’s target of achieving zero direct greenhouse gas emissions by 2040 from the production of electricity and heat.

The offering follows the world’s first sustainability-linked bonds priced by EFI in US dollars and euros in 2019 and the first sustainability-linked bond issued on the sterling market in 2020. The instrument EFI launched as part of this offering is also the largest sustainability-linked transaction ever priced in the fixed-income capital markets. The bond was oversubscribed 2.5 times, with total orders of approximately €11.3 billion and the significant participation of socially responsible investors (SRI), allowing the Enel Group to continue to diversify its investor base.

The Team


Regional Experience