Enel makes ESG breakthrough with innovative format

摘要

Enel has shown the way to a potential broadening of the sustainable bond market with a new, easy-to-replicate issue format that would see the company compensate investors with extra spread if it misses its renewable energy target. The Italian energy company's US$1.5bn five-year deal last Thursday was the first bond linked to the achievement of a sustainable objective, bankers involved said. ESG bonds typically reference a framework set up by the issuer that identifies specific assets to be financed -a costly, lengthy and cumbersome process.