Enel Finance International, the Enel Group’s Dutch-registered finance company, launched yesterday a single-tranche “sustainable” bond for institutional investors on the US and international markets totaling 1.5 billion US dollars (1.4 billion euro).

The issue, which is guaranteed by Enel, was oversubscribed by almost three times, with total orders of approximately 4 billion US dollars and the significant participation of Socially Responsible Investors (“SRI”), allowing the Enel Group to continue to diversify its investor base.

Enel is focused on creating value through business decisions that support the pursuit of the following four SDGs (Sustainable Development Goals, in United Nation’s terminology):

• SDG 7 “Affordable and clean energy”, with over 11.6 GW of additional capacity;
• SDG 9 “Industry, innovation and infrastructure”, with over 46.9 million smart meters installed and 5.4 billion euros of investment in innovation and digitalization;
• SDG 11 “Sustainable cities and communities”, with retail investment and new electrification-oriented energy services to achieve, among others, 9.9 GW of demand response capacity and 455,000 charging points for electric mobility;
• SDG 13 “Climate action”, with a commitment to reduce carbon dioxide emissions to below 0.350 kg/kWheq in 2020 and full decarbonisation by 2050.

This bond issue, the first of its kind and intended to meet the Company’s ordinary financing needs, is linked to the Group’s ability to achieve, by December 31st, 2021, a percentage of installed renewable generation capacity (on a consolidated basis) equal to or greater than 55% of total consolidated installed capacity. To ensure the transparency of the results, the achievement of that target (as of June 30st, 2019, the figure was already equal to 45.9%) will be certified by a specific assurance report issued by the auditor engaged for this purpose.

The operation has been structured as a single tranche issue of 1.5 billion US dollars paying a rate of 2.650% maturing September 10th, 2024. The issue price has been set at 99.879% and the effective yield at maturity is equal to 2.676%. The settlement date for the issue is September 10th, 2019.

The interest rate will remain unchanged to maturity subject to achievement of the sustainability target indicated above as of December 31st, 2021. If that target is not achieved, a step-up mechanism will be applied, increasing the rate by 25 bps starting from the first interest period subsequent to the publication of the assurance report of the auditor.