Enel successfully signed a Sustainability-linked guarantees agreement of 1.35 billion euros with BBVA, in accordance with their commitment to the United Nations Sustainable Development Goals (SDG), in particular related to SDG 7 “ensure access to affordable, reliable, sustainable and modern energy for all”.
Towards this aim, all guarantees issued by BBVA in the interest of Enel and its subsidiaries will include the promotion of sustainability related initiatives and performance. According to the agreements, Enel’s sustainability performance shall be evaluated taking into consideration a certain sustainability-linked key performance indicator (“KPI”), namely Enel’s Renewable Installed Capacity Percentage.
In order to highlight their strong commitment to the pursuit of the UN SDGs, under the agreement, Enel and BBVA will consider the KPI not only for 2021, but also for 2022.
If Enel is able to indicate, through the publication of its Annual Accounts as published on the company website, a KPI achievement of 55% or more and 60% or more of Renewable Installed Capacity Percentage for the Fiscal Years 2021 and 2022 respectively, the bank shall reward such sustainability-linked performance by paying Enel a bonus, otherwise Enel shall pay the bank a penalty. Furthermore, Enel and BBVA agree to consider all guarantees issued in the interest of Enel as “Sustainability-linked guarantees”.
This innovative agreement follows a series of transactions carried out by Enel over the last two years, pioneering the new Sustainability-Linked bonds in the US, Europe and the UK, as well as the Sustainability-Linked facilities in the US and Europe, in addition to the first Sustainability-Linked Foreign Exchange Derivatives agreement.