A2A Issues the First Green Bond Under New EUGB “Gold Standard” – ESG Today

Italian utility firm A2A introduced that it has raised €500 million (USD$521 million) in a brand new inexperienced bond providing, with the issuance marking the primary by a European company issuer to make use of the EU’s new European Inexperienced Bond (EuGB) label.

Adopted by the EU in November 2023, and taking impact final month, the EuGB regulation was launched by the European Fee to ascertain a “gold commonplace” for inexperienced bonds, to be able to fight greenwashing and advance the sustainable finance market within the EU.

Below the regulation, all proceeds from devices issued below the brand new EuGB designation are required to be invested in financial actions which are aligned with the EU Taxonomy, though the principles embrace a flexibility pocket enabling 15% to be invested in financial actions that adjust to the taxonomy necessities, however in sectors that don’t but have established taxonomy standards, with issuers clearly explaining the place these funds shall be allotted.

Along with the funding guidelines, corporations issuing bonds below the EuGB designation are required to comply with strict transparency standards, together with disclosing how the proceeds from the bonds shall be used, in addition to committing to a inexperienced transition plan, and reporting on how the investments contribute to the these plans.

A factsheet by A2A for the brand new issuance outlined 4 classes for eligible use of proceeds from the inexperienced bond, together with renewable vitality, vitality effectivity, transmission and distribution networks, and air pollution prevention and management. Tasks included below these classes vary from photo voltaic PV, wind energy, hydropower, vitality storage and set up, upkeep and restore of energy-efficiency tools to upgrading and increasing electrical energy grids to help renewable vitality integration, and waste assortment initiatives.

A2A reported robust demand for the brand new inexperienced bond, with the providing almost 4.4x oversubscribed at €2.2 billion of orders.

Luca Moroni, CFO of A2A, mentioned:

“This issuance confirms A2A’s place as reference establishment within the improvement of sustainable finance devices. This new product, along with the ESG devices already adopted by the Group, helps the trail in direction of ecological transition via investments aligned with the European Taxonomy, as detailed within the Strategic Plan.”