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Sustainability-Linked Bonds

Enel returns to the SLB market: per angusta ad augusta

Written by Josephine Richardson

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Enel's emissions intensity miss in Apr 2024 was a significant event for the SLB market. Two months on, it has communicated well with investors, and returned to the market with a $2bn two-tranche SLB deal priced at attractive levels.

Enel appears on track for continued emissions reductions, and is likely to achieve its 2024 targets.

Its recent market moves are mixed. Derivative pricing suggests no shift in investor sentiment, but a small underperformance in EUR bonds may have been driven by some divestments.

The new SLB deal however, priced on 18 Jun 2024, seems a great success. It was reported to have priced well inside Enel's secondary curve despite average issuance on the day needing to pay 4bp new issue premium. This is a strong vote of confidence from investors on Enel's ongoing sustainability journey, and a strong vote of confidence from Enel on its continued commitment to the SLB product.

*Through difficulty to honours

About the author

Josephine Richardson

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.

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