22 February 2021

UniCredit fuelled the Italian energy company’s sustainability strategy with an SDG-linked Interest Rate Swaps.

2:00 Min

Back in December 2020, UniCredit amended its loan agreements with Eni to reflect the Italian energy’s company’s commitment to sustainability. These agreements form part of €4.35 billion of loan and credit lines executed by Eni in the context of its broader transition strategy towards decarbonisation.

 

Eni’s strategy involves sustainable finance and a commitment to the Sustainable Development Goals (SDGs) of the United Nations Global Compact.

 

The company also amended its Interest Rate Swap agreement with UniCredit, hedging the interest rate exposure related to the amended loan into an SDG-linked Interest Rate Swaps (IRS).

 

A bonus/malus mechanism has been introduced to meet the sustainability targets, in particular SDG 7 "Affordable and clean energy" and SDG 13 “Climate action”. If the company achieves its KPIs, as defined in the loan agreement, the IRS fixed rate improves.

 

The role of UniCredit in this transaction highlights the strong connection with our client from a coverage standpoint and the bank’s product knowledge, risk management and sustainable finance expertise.

 

The transaction also confirms the commitment of Eni and UniCredit to the theme of environmental sustainability.

 

UniCredit, Eni Gas e Luce (the Eni Italian retail network), together with the consulting firm Harley&Dikkinson have signed today an agreement in Italy that provides dedicated financing for individuals and condominiums, technical and tax advice for all phases of the project, and the execution of works for energy requalification and renovation of the building stock, also made possible by tax incentives such as the Superbonus 110%.