Published: July 16, 2021
Italian energy company Enel sold a multibillion-dollar sustainability-linked bond at the start of July, as the nascent deal structure, which sees a coupon step up on missed ESG targets, continues to gain global popularity.
Enel, rated Baa1/BBB+/A-, smashed the record for biggest sustainability-linked bond with a US$4bn multi-tranche transaction sold into the domestic US market.
Sustainability-linked bonds, an imported structure from the syndicated loan market, are bonds that see a coupon step up if the borrower fails to hit key performance indicators that are linked to environmental, social or governance targets.
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