Green, Social and Sustainability Bonds | CDP

CDP Bonds

CDP is active on financial markets through a medium-to-long-term bond issuance programme (Debt Issuance Programme) and a short-term Commercial Paper Programme, reserved to institutional investors. Since 2023 CDP is also active on the US market with a Yankee Bond issuance. Furthermore, CDP offers bond issuances for retail investors resident in Italy.

 

Green, Social and Sustainability Bond

Since 2017, CDP has been actively participating in the debt capital market as an ESG issuer through its Debt Issuance Programme (DIP). CDP established itself as a leading sustainable issuer by initially offering Social Bonds and then issuing Green and Sustainability Bonds as well, in support of green and social initiatives. This has broadened CDP's investor base to include a diverse range of stakeholders, notably attracting Socially Responsible Investors (SRIs) who seek investments capable of generating additional green and social impact.

Through its central influence on Italy’s economic landscape, and in line with its role of National Promotional Institution, CDP believes it can play a significant role in underpinning a more sustainable growth. Promoting sustainable development is a fundamental part of CDP’s mission, achieving a significant economic, social and environmental impact, thus contributing to the 17 United Nations Sustainable Development Goals.

 

Green, Social and Sustainability Bond Framework

To meet this commitment, through the financing of projects that will deliver environmental and social benefits, CDP has established a Green, Social and Sustainability Bond Framework in 2017 and periodically updated it to ensure alignment with market standards. The current “Green, Social and Sustainability Bond Framework” (the “Framework”), provides the updated Eligibility Criteria for the issuance of Green, Social and Sustainability bonds in accordance with the latest "Green Bond Principles (GBP)", "Social Bond Principles (SBP)", and the "Sustainability Bond Guidelines (SBG)" published by the International Capital Market Association (ICMA).

 

In line with international best practices, the Framework has been reviewed by ISS-Corporate which released a Second Party Opinion on the alignment to the ICMA Principles.

ESG Bond formats

As outlined in the Use of Proceeds section of the Framework, CDP can issue three types of bonds:

 

  • Green Bond: to finance or refinance, in whole or in part, new and/or existing Eligible Green Assets;
  • Sustainability Bond: to finance or refinance, in whole or in part, new and/or existing Green and Social Eligible Assets;
  • Social Bond: to finance or refinance, in whole or in part, new and/or existing Eligible Social Assets.

 

 

 

 

 

 

Use of Proceeds

The net proceeds of any Green, Social and Sustainability Bond will be used to finance or re-finance, in whole or in part, new and/or existing Green/Social loans, projects, equity investments or other instruments ("Eligible Green Assets“ and/or “Eligible Social Assets”) which fall under the Eligible Categories and meet the Eligibility Criteria as defined within the Green, Social and Sustainability Bond Framework. Each CDP Green, Social or Sustainability Bond can focus on one, multiple, or all the above-mentioned Eligible Categories, serving as a significant instrument in contributing to the promotion of sustainable development.

CDP will regularly release a Bond Report within approximately one year from the date of the issuance of each CDP Green, Social and Sustainability Bond and annually thereafter until the full allocation of the proceeds.

 

Eligible Green Assets

Eligible Green Assets aim to achieve positive environmental impacts, encompassing efforts to mitigate climate change, support energy transition, and promote environmental sustainability. The Eligible Green Categories outlined in the Green, Social and Sustainability Bond Framework include: Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Environmentally Sustainable Management of Natural Resources and Biodiversity, Clean Transportation, Sustainable Water and Wastewater Management, Circular Economy, Climate Change Adaptation

Eligible Social Assets

Eligible Social Assets are designed to foster employment and economic growth, especially in SMEs and in economically underperforming areas, as well as facilitating access to essential services, such as public education and to affordable housing and promoting urban regeneration. The Eligible Social Categories outlined in the Green, Social and Sustainability Bond Framework include: Socioeconomic Advancement and Empowerment and Employment Generation, Affordable Housing, Affordable Basic Infrastructure, and Access to Essential Services

ESG Bonds

Social Bond 2024

Social Bond aimed at financing projects for public education, enhancing educational infrastructure nationwide, supporting the healthcare sector as well as financing SMEs to promote their growth, competitiveness, and employment levels.

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Inaugural Green Bond 2023

Inaugural Green Bond aimed at supporting green initiatives with positive environmental impacts, notably infrastructure investments in the sectors of renewable energy, energy and water efficiency, and sustainable mobility.

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Sustainability Bond 2022

Sustainability Bond aimed at financing green and social initiatives, including renewable energy, energy and water efficiency, social infrastructure, and internationalization of Italian companies.

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Social Bond 2021

CDP’s sixth Social Bond aimed to support Italian SMEs and Mid-Caps mainly located in the Southern Italy regions.

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Social Bond 2020

Social Bond aimed to support Italian Companies investing in research, development and innovation and those hit by the coronavirus emergency.

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Covid-19 Social Response Bond

Social Bond aimed at supporting enterprises and territory harshly hit by the Coronavirus emergency

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Social Housing Bond 2020

Social Bond aimed at supporting social housing projects

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Social Bond 2019

Social Bond aimed at financing school facilities and urban redevelopment initiatives

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Sustainability Bond 2018

Sustainability “Hydro” Bond aimed at promoting the development and modernization of the Italian water supply network

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Social Bond 2017

Social Bond aimed at financing Italian Small Medium Enterprises (SME) based in economical deprived areas

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