Borsa Italiana welcomes CDP's Sustainability Bond

Oct 01 2018 - 16:56

The first Sustainability Bond in the green and social segment of the Borsa Italiana bond market launched in March 2017

CDP's Sustainability Bond involves €00 million intended to provide resources to fund investments in the country in the water industry

From today Cassa depositi e prestiti S.p.A. (CDP) will list its first Sustainability Bond on the Borsa Italiana ExtraMOT market, in the segment dedicated to green and social bonds established to offer institutional and retail investors the opportunity of investing their capital where the proceeds will be applied to environmental and social or social projects.

Specifically, it involves the first Sustainability Bond from an Italian corporate issuer, consistent with the International Capital Markets Association’s guidelines,which will enable the funding of various environmental and social projects in the following four different areas: Infrastructure and Urban Development, Education, SME Finance, Energy and Environment. Like the previous Social Bond, this bond issue also draws its inspiration from the United Nations Sustainable Development Goals.

The issue involves €00 million, at a fixed rate, not subordinated and not backed by guarantees, aimed at institutional investors and mainly targeted to the so called Socially Responsible Investors. The transaction comes under the Debt Issuance Programme (DIP), CDP's medium-/long-term issue programme of €0 billion, for a 5-year term (expiring in September 2023), with an annual coupon of 2.125% and a price of 99.766%.

Pietro Poletto, Global Head of Fixed Income Products for LSEG (London Stock Exchange Group) said:

"Borsa Italiana, conscious of the role that stock exchanges can play in supporting issuers and facilitating dialogue with investors with regard to sustainability issues as well by adopting a proactive approach, is delighted to welcome CDP's first Sustainability Bond in the ExtraMOMT green and social segment Dealing with the new challenges of sustainability is becoming increasingly significant for all market operators and CDP's decision to finance investments in the country starting with the water industry is another important element in the transition to a sustainable economy model".

Fabio Massoli, Head of CDP Finance:

"The Sustainability Bond issue confirms CDP’s commitment to sustainable finance and the attention paid to initiatives in favor of the Territory. The proceeds raised through this instrument will allow to finance investments for the construction and modernization of the country’s water infrastructures, with the aim of filling the infrastructural gap that characterizes the sector. With this bond issue and other projects currently in place, CDP confirms the importance it attributes to the promotion of a sustainable development"

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