How the development of sustainability-linked guarantee facilities will contribute to increase renewable energy?

28/05/2021

Societe Generale signed with ENEL its first Sustainability-Linked Guarantee Agreement for a total amount of EUR 440 million.

ENEL, one of the major global private player in the renewable energy sector (active in 32 countries with 70 million retail customers worldwide), has set-up clear ambitions to develop a more sustainable business model and has, in this respect, been an early issuer of green and sustainability-linked bonds.

With a concrete holistic approach, ENEL extended its ESG attitude even to the Trade Finance choosing Societe Generale as the right financial partner to fulfil its goals.

It is in this perspective that it fits the Sustainability-Linked Guarantee Agreement with Societe Generale, as the economic conditions for the issuance of guarantees vary with the achievement of sustainability objectives by ENEL (KPI – Key Performance indicator).

In fact, the agreement consists in linking the implementation of ENEL’s sustainability strategy, measured through the Renewable Capacity Installed in 2020 and 2021, to a pricing incentive mechanism granted by the bank.
 

“ This agreement confirms ENEL’s willingness to have an even more sustainable finance to support its business. ”

Stefano Scudiere,
Head of Trade Finance for ENEL

“ As testified by this mandate, Societe Generale is determined to do all it is necessary to support its clients in their ESG transition, offering innovative and tailor-made solutions. We are very proud to be alongside ENEL, the Italian issuer most advanced in the sustainable finance, as we did for the issuance of the pioneering Sustainable Development Goals-Linked Bond and the first ever SDG Linked Cross Currency Swap. ”

Erica Rizzetto,
Head of Global Transaction Banking for Societe Generale in Italy