Despite their stronger regulatory pedigree, A2A's EuGBs appear to trade on or above the yield curve in the secondary market — wider than older green bonds and vanilla instruments alike. Book cover at issuance seems to be below the corporate green bond average for traditional green bonds, a picture mirrored across corporate EuGB issuance. This suggests the regulatory support has yet to translate into measurable demand.
This is counterintuitive. ESMA fund naming guidelines treat EuGBs more favourably than regular green bonds, exempting them from certain exclusions for sustainable funds. In theory, this should generate greater investor demand. The data, however, does not yet support that conclusion — and the most recent issuance may be worsening the picture.
Meanwhile, A2A's two outstanding SLBs have largely concluded their sustainability story. One missed its 2024 renewable capacity target and now pays a 25bp step-up coupon. The other achieved its Scope 1 emissions target a full year early. With both KPIs resolved, neither bond retains meaningful exposure to A2A's ongoing sustainability performance.
