Europe launches the first SDG linked bond

Multinational energy company Enel released the first Sustainable Development Goal linked bond in Europe following on heels of the $1.5B American issue. The €2.5B multi-tranche bond oversubscribed by four times, kickstart’s a major significant step in bridging the 5-7T gap in attracting private capital to meet the 2030 SDG goals. The innovative aspect of the bond is that it links coupon payment aka interest payment to two SDG goals of the company: Goal 7 (affordable and clean energy) and Goal 13 (climate change). Another way of looking at this bond issue is that investors are taking a call option on Enel’s ability to implement the stated SDG projects within the time targeted.

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