Eni Secures $6.1B Sustainability-Linked Credit
Italian oil and gas company Eni has secured a $6.1 billion financing through its Sustainability-linked Financing Framework targets, updated in May 2022. The five-year sustainability revolving credit line is linked to two of the targets.
Specifically, with regards to the 2050 carbon neutrality strategy, Eni further strengthened its objectives, announcing in May a 35 percent reduction in net scope 1, 2, and 3 emissions by 2030 and 80 percent by 2040 with respect to 2018 levels (compared to the -25 percent and -65 percent targets in the previous plan).
For net scope 1 and 2 emissions, the company will achieve -40 percent by 2025 (compared to 2018 levels) and net zero emissions by 2035, five years ahead of the previous plan. It will also increase the share of investments dedicated to new energy solutions, targeting 30 percent by 2025, doubling to 60 percent by 2030, and reaching 80 percent by 2040.
The margin of the new credit line is linked to the achievement of sustainability targets relating to Net Carbon Footprint Upstream (Scope 1 and 2) and installed capacity for the production of electricity from renewable sources.
Depending on the achievement of each target, a step up/step down mechanism will be used and it will affect the margin applicable for subsequent uses of the credit line, as well as the fees for any unused portions of the line itself.
The operation is in line with Eni's goal of fully integrating its financing with its sustainability strategy aimed at achieving carbon neutrality by 2050 and contributing to the achievement of the United Nation’s Sustainable Development Goals (UN SDGs).
Moreover, the new facility will provide Eni with a flexible tool to manage any financial needs, further strengthening its solid liquidity position.
The credit line has been granted by 23 leading global financial institutions, including Crédit Agricole CIB, Santander Corporate & Investment Banking, and Unicredit (as underwriters, global coordinators, bookrunners, and sustainability coordinators), and Intesa Sanpaolo (as bookrunner), in addition to HSBC (as mandated lead arranger), BBVA, Banco BPM, Bank of America, Barclays Bank, BayernLB, BPER Banca, Citi, Deutsche Bank, ING Bank, J.P. Morgan, Mizuho Bank, SMBC Bank, Société Générale and Standard Chartered (as lead arrangers) and Bank of China, Bankinter, Mediobanca and Morgan Stanley (as arrangers).
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