Eni issues the world’s first Sustainability Linked Bond in the Oil & Gas sector

Crédit Agricole CIB acted as Joint Bookrunner on the SLB and Sustainability Structuring Agent on the Framework.

On 7 June, 2021, Eni S.p.A., successfully issued the world's first Sustainability Linked Bond (SLB) in the oil & gas sector Will open in a new tab , for a nominal amount of EUR 1 billion, with a 7-year maturity. The transaction was placed with a broad base of international investors including several top SRI asset managers.

The SLB will be linked to the achievement of two Sustainability Performance Targets (SPTs), whereby Eni pledges to:

• Increase renewable energy installed capacity to at least 5 GW by the end of 2025, vs. 0.3 GW in 2020,
• Lower net greenhouse gas emissions of upstream activities to at least 7.4 million tons by the end of 2024, or -50% vs. 2018.

Eni failing to reach one or both SPTs will cause the coupon on the bond to increase by 0.25%.

Crédit Agricole CIB acted as a Joint Bookrunner and Roadshow Coordinator on this transaction.
 

“We are delighted to have assisted Eni on such a ground-breaking transaction. The success of this deal lies first and foremost in the soundness of Eni’s sustainable strategy, but meticulous preparation through every step and seamless coordination among the parties were also important factors. A spirit of true partnership animated the whole project; that’s something no KPI can capture but that definitely made a difference.”

Gianmarco Viglizzo, Debt Capital Markets

The Sustainability-Linked Bond is governed by a Sustainability-Linked Financing Framework Will open in a new tab that the company had released on May 20, and on which Crédit Agricole CIB was Structuring Agent.

The Framework lays out the guidelines that Eni will follow in issuing new sustainability-linked financing instruments, including bonds (in public and private format), bank loans (term loans and credit lines) and hedging derivatives.
 

“The Framework and KPI’s chosen by Eni where well received by the ESG investor community, who broadly acknowledged the relevance and ambitiousness of the company’s sustainable objectives, and perceived a high level of commitment from the company’s management. It was encouraging to see such a positive reaction to this deal, which will hopefully serve as inspiration for other players in this type of industry."

Pascale Forde-Maurice, Sustainable Banking

“The role played by Crédit Agricole CIB in the Bond issuance and the Sustainability Linked framework was key in our relationship, considering the importance of the Sustainability concept permeating ENI current strategy. Once again, Crédit Agricole CIB reconfirmed the expertise and leadership in the capital markets and sustainability with this pioneering transaction for its sector.”

Francesca Benucci, Senior Banker