CDP launched the first Italian Sustainability Bond

CDP launched the first Italian Sustainability Bond

€500 million collected to finance projects in the Italian water sector and reaffirm CDP’s commitment to Italian territories

Rome September 20, 2018

CDP launched its first Sustainability Bond in the international capital markets.

With a €500 million nominal value,, the bond aims to finance social and green projects with a focus on promoting Italian water secto development. The senior unsecured bond – with a duration of 5 years – registered orders of more than €1 billion with a wide demand distribution and a strong presence of foreign investors. As for the investors’ breakdown, 37% of subscribers were banks, 29% investment funds and asset managers, 22% insurance companies, and the remaining 12% central banks and other investors.

Confirming its commitment in promoting responsible finance products and following the issuance of the first Italian Social Bond, CDP marks a national record with this operation that represents the first Italian Sustainability issuance in line with International Capital Markets Association (ICMA).

The Sustainability Bond falls within the new "Green, Social and Sustainability Framework" that defines the issuance criteria for these financial instruments. The proceeds will be used to finance or refinance projects with environmental and social impact in four specific areas: infrastructures and development of cities, education, SMEfinancing, energy, and environmental sustainability. The new CDP Framework obtained a Secondary Party Opinion by sustainability research and analysis company Vigeo Eiris.

This operation is part of CDP’s attention and commitment to Italian territories’ growth and infrastructure development. Sustainability “Hydro” Bond aims to finance the realization and modernization of Italian water infrastructure by filling the gap that characterizes this sector and fostering investments’ headway and operative efficiency progress.

CDP Sustainability”Hydro” Bond focuses on UN SDG 6: “Clean Water and Sanitation”.

Find out more about the new Sustainability Bond