For the first time in a public bond issuance, a tranche of the bond couples a KPI linked to the EU Taxonomy with a KPI linked to the United Nations Sustainable Development Goals (SDGs). The other tranche of the bond is linked to two KPIs related to the Group's full decarbonization path, across direct and indirect greenhouse gas emission reduction, as detailed below.

"We are enthusiastic to introduce this groundbreaking tool to the market, the first of its kind to establish a link between the EU taxonomy and the United Nations SDG 13 on climate action. Through our investments in decarbonized technologies, we comply with the EU taxonomy and for this reason, we are set to achieve the United Nations SDGs. This inextricable link between SDGs and taxonomy is embedded in our Strategy and reflected in all the financial tools we are using as well as in our industrial decisions. Through this synergistic approach, we are working relentlessly to achieve our decarbonization and electrification targets while enhancing the energy security of our countries of presence, paving the way for the creation of long-term sustainable value for all”, said Alberto De Paoli, Enel CFO.

The bond, which is guaranteed by Enel, was almost 3 times oversubscribed, with total orders of approximately €4 billion and the significant participation of Socially Responsible Investors (SRI), enabling the Group to continue to diversify its investor base.

”The success of the bond is a clear acknowledgement of the Group's sustainability strategy and of its ability to generate value by steering an investment plan in line with the European Union Taxonomy criteria, while contributing to the achievement of the United Nations SDGs”, according to Enel.

The proceeds from the issue are expected to be used by EFI to fund the Group's ordinary financing needs.

With the Strategic Plan presented to the financial community in November 2022, Enel committed to rolling out more than 80% of its 2023-2025 investment plan in line with the EU Taxonomy criteria due to their substantial contribution to climate change mitigation.

In December 2022, Enel's commitment to fighting against climate change achieved a new historic milestone as it increased the ambition of its decarbonization roadmap by setting new greenhouse gas reduction targets, which covered its direct and indirect emissions and were certified by the Science Based Targets initiative (SBTi) as consistent with limiting global warming to 1.5ºC, and therefore aligned to the most ambitious temperature goal of the Paris Agreement adopted by the United Nations in 2015.

Enel's new certified targets follow the ambitious goal the Group had disclosed more than one year ago, when it brought forward its zero emissions commitment by ten years, from 2050 to 2040. In addition, the new certified targets cover all Group emissions along its value chain, including direct emissions from its facilities, as well as upstream and downstream indirect emissions from its suppliers and customers.

Such commitments are now integrated in the new Sustainability-Linked Financing Framework, last updated in February 2023, which fully integrates sustainability into the Group's global financing program through Sustainability-Linked Bonds, Sustainability-Linked Loans, SDG Commercial Paper Programs, Sustainability-Linked Foreign Exchange Derivatives, Sustainability-Linked Rates Derivatives and Sustainability-Linked Guarantees.

The Framework is aligned with the International Capital Market Association's (ICMA) “Sustainability-Linked Bond Principles” and the Loan Market Association's (LMA) “Sustainability-Linked Loan Principles”, as verified by the Second-Party Opinion Provider Moody's Investors Service.

Three new KPIs added to the Framework reflect the Group's abovementioned ambition, namely being: “Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh)”, “Absolute Scope 3 GHG emissions relating to Gas Retail (MtCO2eq)” and “Proportion of CAPEX aligned to the EU Taxonomy (%)”.

The issuance embeds all three of these new KPIs and is structured in the following two tranches:

- €750 million at a fixed rate of 4.000%, with settlement date set on February 20th,2023, maturing  February 20th, 2031: the issue price has been set at 98.877% and the effective yield at maturity is equal to 4.168%; the interest rate will remain unchanged to maturity, subject to the achievement of the following Sustainability Performance Targets (“SPTs”). In particular, for the KPI related to the “Proportion of CAPEX aligned to the EU Taxonomy (%)”, the achievement of a SPT equal to or higher than 80% on December 31st, 2025 for the 2023-2025 period. For the KPI related to the “Scope 1 GHG emissions intensity relating to power generation (gCO2eq/kWh)”, the achievement of a SPT equal to or less than 130gCO2eq/kWh on December 31st, 2025. If one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied, increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the relevant assurance report issued by an external verifier.

- €750 million at a fixed rate of 4.500%, with settlement date set on February 20th, 2023, maturing  February 20th, 2043: the issue price has been set at 97.669% and the effective yield at maturity is equal to 4.682%; the interest rate will remain unchanged to maturity, subject to the achievement of the following SPTs. In particular, for the KPI related to the “Scope 1 and 3 GHG emissions Intensity relating to Integrated Power (gCO2eq/kWh)”, the achievement of a SPT equal to ZERO on December 31st, 2040; for the KPI related to the “Absolute Scope 3 GHG emissions relating to Gas Retail (MtCO2eq)”, the achievement of a SPT equal to ZERO on December 31st, 2040. If one or both of the above mentioned SPTs are not achieved, a step-up mechanism will be applied, increasing the rate by 25 bps, as of the first interest period subsequent to the publication of the relevant assurance report issued by an external verifier.

The issue, which has an average duration of approximately 14 years, has an average coupon of 4.25%.

The bond is expected to be listed, at the time of the issue, on the Euronext Dublin regulated market.

In line with the Strategic Plan, the new Sustainability-Linked Bond contributes to the achievement of the Group's objectives related to sustainable finance sources on Group's total gross debt, set at around 70% in 2025.

The bond issue was supported by a syndicate of banks, with Banca Akros, BBVA, BNP Paribas, BPER, Crédit Agricole, CaixaBank, Citi, Commerzbank, Goldman Sachs, Intesa Sanpaolo, ING, J.P. Morgan, Mediobanca, Morgan Stanley, Natixis, Santander, Société Générale, Unicredit acting as joint-bookrunners.