Enel issues €1.25B green bond

Business & Finance

Italian energy giant Enel has launched green bond totaling €1.25 billion as the company transitions towards clean energy future.

The bond issuance provides for repayment in one installment at maturity on September 16, 2024, and has already received approximately €3 billion of subscriptions, with considerable interest from social responsible investors, according to Enel.

It is expected that the green bond will be listed on the Irish and Luxembourg stock exchanges.

Enel said that the net proceeds raised from the green bond issuance will be used to finance its eligible green projects.

Such projects include development, construction and repowering of renewable power plants, development of transmission and distribution networks, and the implementation of smart grids and smart meters in Enel’s areas of operation.

The green bond launch was led by a syndicate of banks comprising Banca IMI, BofA Merrill Lynch, Credit Agricole CIB, Citi, Deutsche Bank, HSBC, JP Morgan, Mizuho Securities, Natixis, SMBC Nikko and UniCredit Bank as joint book-runners.

Enel Group’s subsidiary, Enel Green Power, recently acquired H24 wave energy device, deeming the move as the ‘first big step toward potential future advantages for Enel’ in the niche market of wave energy.

Enel Green Power participated in a wave energy project in Italy that saw the installation of the ISWEC wave energy device off the island of Pantelleria in August 2015. Enel Green Power’s role was to identify the technical and economical targets for the technology.

In addition, in 2015, Enel Green Power joined Ocean Energy Europe, the Brussels-based industry group representing ocean energy renewable sector in Europe.