Eni intends to place the first issue of sustainability-linked bonds in its sector, with a duration of 7 years, as part of its Euro Medium Term Note Program. As specified in the relevant terms and conditions, the bond issue will be linked to the achievement of the following targets: Net Carbon Footprint Upstream (Scope 1 and 2) equal to or less than 7.4 MtonCO2eq as at 31 December 2024 (-50% compared to the baseline of 2018); installed capacity for the production of electricity from renewable sources equal to or greater than 5 GW at 31 December 2025. This is learned in a note from the Six-legged Dog.
The interest rate applied, as stated in the press release, will remain unchanged until the maturity of the bond loan upon the achievement of the above targets. If one of the two objectives is not achieved, a step-up mechanism will be applied with an increase of 25 basis points in the interest rate, in line with the provisions of the terms and conditions of the issue. The issue takes place in execution of the resolution of the board of directors on 23 April 2020 and is aimed at financing Eni’s future needs and maintaining a balanced financial structure.
The bond loan, intended for institutional investors, will be placed compatibly with market conditions and subsequently listed on the Luxembourg stock exchange. To issue the bond, Eni uses a syndicate of banks made up of BNP Paribas, BofA Securities, Crédit Agricole CIB, Goldman Sachs International, JP Morgan, Morgan Stanley and UniCredit who will act as joint lead managers.