Anthropocene Fixed Income Institute

Chile issued the first sovereign SLB in March 2022 with some robust KPIs aligned with Chile's NDCs. Our review illustrates how to price the optionality value in the bond.

(5 April 2022)

 (Discussion paper) Based on a novel pricing approach, this paper suggests that Sustainability–Linked Bonds (SLBs) should target credible and robust KPIs with material financial impact (front-loading, coupon step-up sizes) in order to achieve incentivizing cost-of-capital differences compared to traditional bonds. 

(18 March 2022)

Adani  Electricity, a important part of the Adani Group's coal play, is looking to do a sustainability linked bond, structured by the bank with the most fossil-linked fixed income fee dependency. AFII suggest as alternative SLB structure where the coupon of the bond increases if Adani's Carmichael coal mine is finished. That would be "cool."

(14 July 2021)

AFII does a deal review of a potential forthcoming sustainability linked bond (SLB) from one of the key oil sands players in the world. We are underwhelmed by some of the specific metrics, and shocked of the audacity in general

(23 June 2021)

Eni was the first company out of the oil sector to issue a sustainability-linked bonds. The company has some fairly ambitious net-zero plans, including Scope 3 emissions. We analyse how this should be translated into targets in an SLB structure that might be forthcoming.

(19 July 2022)

Enel is the largest issuer in the sustainability-linked bond (SLB) market with USD 22.7bn outstanding, and representing over 40% of their total public debt. We conduct an analysis to see what we can learn from the most prolific issuer in this market, as SLBs become their benchmark debt product.

(25 July 2022)