The financing company of the Enel Group, Enel Finance International N.V., placed a €1 billion green bond on the European market reserved for institutional investors and backed by a guarantee issued by Enel, the Italian energy company announced Monday.
The net proceeds of the issue, carried out under the €35 billion Medium-Term Note Program, will be used to finance and/or refinance, in whole or in part, the Enel Group's eligible green projects, in accordance with the Green Bond Principles published by the International Capital Market Association (ICMA).
According to the statement, eligible green projects include projects for the development, construction and repowering of renewable generation plants; the construction, management and operation of transmission and distribution networks, as well as smart metering systems; the development, construction, installation and maintenance of sustainable mobility projects, smart lighting, energy efficiency and demand response initiatives.
The third issue by the group provides for repayment in a single installment at maturity on July 21, 2025 and the payment of a fixed-rate coupon equal to 1,500 percent, payable annually in arrears in July as from 2019. The settlement date for the issue is Jan. 21, 2019.
According to the statement, the green bond is expected to be listed on the regulated markets of the Irish and Luxembourg Stock Exchanges, and also be admitted to trading on the multilateral trading facility ExtraMOT PRO organized and managed by Borsa Italiana. It is expected that the green bond will be assigned ratings in line with those of Enel.
"The transaction has received subscriptions amounting to more than €4.2 billion, with the significant participation of Socially Responsible Investors (SRI), enabling the Enel Group to continue to diversify its investor base," the statement said.
The transaction is in line with the Group's financial strategy set out in the 2019-2021 Strategic Plan, which provides for the refinancing of €13.6 billion through 2021, including the issue of green bonds as instruments dedicated to the financing of projects to spur the transition to a low-carbon economy, it added.
By Hale Turkes