First sustainability-linked bond in Spain


Repsol, a Spanish global multi-energy provider, successfully launched its inaugural Sustainability-Linked Bonds in June, becoming the first company in Spain to issue this type of debt.

Repsol has recently published its Transition Financing Framework enabling the Group to potentially link its financing instruments to its sustainability roadmap targeting to become a net zero emissions company by 2050. The Framework includes both a green/transition use-of-proceeds approach and a sustainability-linked structure. For its maiden dual-tranche benchmark issue, Repsol opted for the sustainability-linked feature.

Sustainability-linked bonds directly link the company's sustainability corporate strategy through key performance indicators (KPIs). The referral KPI defined by the Group is the Carbon Intensity Indicator (CII) with several targets set in 2025, 2030 and 2040. Through this dual-tranche transaction, Repsol included the following CII targets:  reduction by 12% by 2025 (applicable to the 2029 tranche) and by 25% by 2030 (applicable to the 2033 tranche), against a 2016 baseline. 

We are gearing our company strategy towards fulfilling this objective, aligning our business plans with the objectives of the energy transition and bolstering our profile as a customer-centric multi-energy provider.
Josu Jon Imaz,CEO of Repsol

The 1.25bn dual-tranche Sustainability-Linked Bond issue was divided into two tranches; a 650 million euro eight-year issue and a 600 million euro 12-year bond. The number of high-quality orders highlighted a strong interest for Repsol’s new sustainable policy.  

Societe Generale acted as Joint Bookrunner in this deal.

We are pleased to accompany Repsol in their inaugural Sustainability-Linked Bond issue and contribute to its commitment to become a net zero emissions company by 2050. We fully support our clients in the development of sustainable projects
Fernando García,Head of Debt Capital Markets for Iberia