Eni Transforms More than €4 Billion Financial Instruments to SDG-tied Sustainability Linked Agreements
Energy company Eni announced today that it has signed agreements with several banks to amend €4.35 billion of existing financial instruments to be linked with the company’s achievement of United Nations Sustainable Development Goals (SDGs). The amended agreements include €1.5 billion of loans, €2.4 billion of committed credit lines and €450 million of derivatives to hedge interest rate risk.
Sustainability-linked securities have attributes including interest payments tied to an issuer’s achievement of specific sustainability targets. According to the terms of the new agreements, the loans and credit lines have been transformed into Sustainability Linked Loans, and the derivatives for hedging the interest rate risk into SDG linked Interest Rate Swaps, each carrying a bonus / malus mechanism associated with a specific sustainability performance objective linked to SDG# 7 (Affordable and clean energy) and to SDG 13 (Climate action).
Eni CEO Claudio Descalzi said:
“We have made a further and important step in our energy transition path. Linking our financial instruments to the United Nations Sustainable Development Goals represents a strong and concrete commitment, through which we want to convey to the market and our stakeholders the absolute rigor and irreversibility of our sustainable evolution towards decarbonisation.”
Banks supporting the amended agreements included Banco Bilbao Vizcaya Argentaria S.A., Barclays, BNL gruppo BNP Paribas, BofA Securities, Crédit Agricole Corporate and Investment Bank, HSBC, Intesa Sanpaolo S.p.A., Mediobanca, Santander CIB, SMBC, UBI Banca S.p.A., and UniCredit S.p.A..