The EUGBS requires issuers to align all bond proceeds to activities classified under the EU Taxonomy Regulation, which was introduced to funnel capital toward the bloc’s climate and environmental goals.
All but one of A2A’s previously issued bullet green bonds, however, were already fully allocated to this framework, meaning the EUGBS instrument represents more of the same to the company’s debt investors.
In this research note, we also unpack A2A’s two outstanding Sustainability-Linked Bonds – one of which looks likely to miss its Sustainability Performance Target and force an increase in the coupon paid to investors.
