Category: Lending
A weekly overview of ESG developments for fixed income A weekly overview of ESG developments for fixed income A weekly overview of ESG developments for fixed income
BBVA has signed a €1.35bn sustainability-linked guarantee facility with Italian power provider Enel, based on its shift to renewable energy. “If Enel reaches a level of achievement of 55% of the indicator or more in fiscal year 2021, and 60% or more in 2022, the bank will reward Enel with a bonus,” said BBVA. “Otherwise, the utility has agreed to pay the bank a penalty.”
Austrian electricity company Verbund has issued a €500m green and sustainability-linked bond. The 20-year bond will be used to finance or refinance hydropower, solar or wind power projects. It has a coupon of 0.9%, which will be increased by 25 basis points if the company has not installed 2000MW of renewables capacity by the end of December 2032, or an additional 12,000MVA of transformer capacity by the same date. The order book was four times oversubscribed, and 90% of issuance went to PRI signatories.
The World Bank is to issue a $45m Wildlife Conservation Bond this ye…