Enel Finance International (EFI) has now launched a multi-tranche sustainability-linked bond for institutional investors in international markets totalling $4bn. The bond, which is guaranteed by Enel, was three times oversubscribed, with total orders of approximately $12bn.

The bond is linked to the achievement of Enel’s sustainable objective related to the reduction of direct greenhouse gas emissions (Scope 1), contributing to the UN Sustainable Development Goal 13 (Climate Action) and in line with the Group’s Sustainability-Linked Financing Framework.

Alongside the transaction, EFI has signed new sustainability-linked cross currency swaps with four banks, to be hedged against the US dollar-euro exchange rate and interest rate risk. The notable feature of these derivative instruments is the commitment of the counterparties to achieve specific and ambitious sustainability performance targets (SPTs), with a discount or penalty in the cost of the transaction based on the ability of each counterparty to meet its respective SPT.

The bond issue was supported by a syndicate of banks, with Barclays, BNP Paribas, Bank of America, Citigroup, Credit Agricole, Credit Suisse, Goldman Sachs, HSBC, JP Morgan, Mizuho, Morgan Stanley, Société Générale and SMBC Nikko acting as joint-bookrunners.

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