Enel Finance International N.V., a Netherlands-based subsidiary of Italian utility Enel SpA, is issuing €1 billion of 1.5% green bonds, due July 21, 2025.
Enel will use proceeds from the issuance to finance what the company described in a Jan. 14 news release as "green projects," including renewable generation, smart grid technology, sustainable mobility, smart lighting and energy efficiency and demand response initiatives.
The bonds are reserved for institutional investors and backed by a guarantee issued by Enel, according to the statement, which noted that the deal has received subscriptions exceeding €4.2 billion.
This is the third European green bond issued by Enel, and follows a €1.25 billion issuance in January 2018.
Enel plans to refinance €13.6 billion through 2021 according to its 2019-2021 strategic plan.
The issue price for the bonds has been set at 98.565% with the effective yield at maturity equal to 1.736%. Interest is payable each July beginning in 2019.
The transaction is due to settle on January 21, 2019.
A syndicate of banks acted as joint-bookrunners on the issuance: Banca Akros, Banca IMI, Bank of America Merrill Lynch, Credit Agricole CIB, CaixaBank, Commerzbank, Credit Suisse, ING, J.P. Morgan, Mediobanca, Raiffeisen Bank International, Société Générale, UBI Banca and UniCredit Bank.
The bonds will be listed on the regulated markets of the Irish Stock Exchange, the Luxembourg Stock Exchange and on the multilateral trading facility "ExtraMOT PRO," organized and managed by Borsa Italiana.
Enel has a BBB+ rating from S&P Global Ratings Inc., a Baa2 rating from Moody's and a BBB+ rating from Fitch Ratings.