Chicago, Jan. 16 – ENEL Finance International NV priced €1.75 billion of sustainability-linked bonds in two parts (Baa1/BBB/BBB+), according to a market source.
The first part priced as €750 million of 3.375% bonds due 2028 at 99.727 to yield 3.445%, or at mid-swaps plus 85 basis points. Initial talk was in the mid-swaps plus 120 bps area. Guidance put them in the 90 bps area.
The longer-dated tranche priced as €1 billion of 3.875% bonds due 2035 at 98.792 to yield 4.013%, or at mid-swaps plus 135 bps. Talk had the notes coming in the mid-swaps plus 170 bps area, guided later to the 140 bps area.
For the first tranche, the key performance indicators will be linked to scope 1 emissions relating to power generation and the proportion of capex aligned to the European Union taxonomy. For the second tranche, the key performance indicators still include scope 1 emissions, but also the percentage of renewable installed capacity out of total capacity.
The measurement date for the first tranche will be Dec. 31, 2026 and the measurement date for the second bond will be Dec. 31, 2030.
The initial coupons will step up 25 bps upon the occurrence of a failure to meet one or both of the key performance indicators on the relevant measurement date.
Both bonds have make-whole call protection, at Bunds plus 20 bps for the shorter-dated notes and 30 bps for the longer-dated notes. The 2028 notes have a one-month par call, and the 2035 notes have a three-month par call.
BNP Paribas was listed as handling billing and delivery on the 2028 notes, and Goldman Sachs was doing billing and delivery on the 2035 notes.
The bookrunners also included Banka Akros, Barclays, BBVA, BPER Banca, Credit Agricole CIB, Deutsche Bank, IMI-Intesa San Paolo, JPMorgan, Natixis, Santander, Societe Generale and UniCredit.
The combined order book was €5.8 billion at guidance, with a lean towards the 11-year tranche.
Proceeds will be used for general corporate purposes.
The notes will be listed in Dublin. They are guaranteed by ENEL SpA.
Enel is a Rome-based electric utility company.
| Issuer: | ENEL Finance International NV
|
| Guarantor: | ENEL SpA
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| Amount: | €1.75 billion
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| Issue: | Sustainability-linked bonds
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| Trade date: | Jan. 16
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| Settlement date: | Jan. 23
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| Ratings: | Moody’s: Baa1
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| S&P: BBB
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| Fitch: BBB+
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| Distribution: | Regulation S
|
|
|
| 4.5-year notes
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| Amount: | €750 million
|
| Maturity: | July 23, 2028
|
| Bookrunners: | BNP Paribas (billing and delivery), Banka Akros, Barclays, BBVA, BPER Banca, Credit Agricole CIB, Deutsche Bank, Goldman Sachs, IMI-Intesa San Paolo, JPMorgan, Natixis, Santander, Societe Generale and UniCredit
|
| Coupon: | 3.375%
|
| Price: | 99.727
|
| Yield: | 3.445%
|
| Spread: | Mid-swaps plus 85 bps
|
| Call features: | Make-whole call at Bunds plus 20 bps; one-month par call
|
| Price talk: | Mid-swaps plus 120 bps area, guided to mid-swaps plus 90 bps area
|
| ISIN: | XS2751666426
|
|
|
| 11-year bonds
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| Amount: | €1 billion
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| Maturity: | Jan. 23, 2035
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| Bookrunners: | Goldman Sachs (billing and delivery), Banka Akros, Barclays, BBVA, BNP Paribas, BPER Banca, Credit Agricole CIB, Deutsche Bank, IMI-Intesa San Paolo, JPMorgan, Natixis, Santander, Societe Generale and UniCredit
|
| Coupon: | 3.875%
|
| Price: | 98.792
|
| Yield: | 4.013%
|
| Spread: | Mid-swaps plus 135 bps
|
| Call features: | Make-whole call at Bunds plus 30 bps; three-month par call
|
| Price talk: | Mid-swaps plus 170 bps area, guided to mid-swaps plus 140 bps area
|
| ISIN: | XS2751666699
|
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