Sustainability Bond 2018: green bond rete idrica | CDP

Sustainability Bond 2018

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

CDP successfully closed its first Sustainability “Hydro” Bond, issued under the Debt Issuance Program (DIP), with demand strongly outstripping supply.It is the first Sustainability “Hydro” Bond launched in the international capital market by an Italian issuer, dedicated to the development and modernization of the Country's water-sector, characterized by a significant infrastructural gap and an average annual per capita investment substantially lower than those recorded in other European countries.

Water Supply Network: Infrastructure Critical Aspects

The Italian water sector is affected by a series of criticalities like, among others, the management dimensional fragmentation (with 62 Local Authority Water Boards and 92 Water Catchment Areas) and a slow and non-homogeneous Governance implementation at the national level, which over time have prevented its development. In this context, with inadequate investment level with respect to actual needs and growing tariffs, the first CDP Sustainability Bond will finance local investments with the aim of resolving these market failures.

Read more about Italian water sector

The issue is consistent with the CDP Green, Social and Sustainability Bond Framework, in line with the Sustainability Bond Guidelines released by the International Capital Market Association (ICMA) in June 2018, and inspired by the UN Sustainable Development Goals. The Sustainability “Hydro” Bond focuses on UN SDG 6: “Clean Water and Sanitation”.

Tenor 5 years

Nominal amount € 500 mln

Annual coupon 2.125%