Enel SpA has raised $1.5 billion from an oversubscribed offering of bonds linked to the U.N. sustainable development goals, with orders totaling approximately $4 billion.
The bond issue is linked to the company's ability to reach at least 55% renewable generation within its total installed capacity by Dec. 31, 2021. The achievement of the target will be certified by an auditor's specific assurance report.
The 2.650% bond matures Sept. 10, 2024. The issue price has been set at 99.879% and the effective yield at maturity is equal to 2.676%. Settlement is scheduled for Sept. 10.
The bond was given a provisional rating of BBB+ by S&P Global Ratings and A- by Fitch Ratings, and a definitive rating equal to Baa2 by Moody's.
The interest rate will remain unchanged to maturity subject to achievement of the sustainability target. If that target is not achieved, a step-up mechanism will be applied, increasing the rate by 25 basis points starting from the first interest period subsequent to the publication of the assurance report.
BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Société Générale acted as joint bookrunners.
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