An SLB (Sustainability Linked Bond) is a bond issued by a company, the return on which varies according to the achievement of sustainability targets (Sustainability Performance Target) measured on specific agreed KPIs.
Unlike Green and Social Bonds, SLBs are not linked to the realisation of a single sustainability project. The proceeds are not earmarked to finance specific projects but can be used to support the implementation of the company’s overall sustainable development strategy.
The birth of Sustainability Linked Bonds occurs in 2019 and is linked to Enel; specifically to its Corporate Bond called General Purpose SDG Linked Bond, issued to finance the expansion of production capacity linked to renewable sources, a strategy based on the Sustainable Development Goals of the UN 2030 Agenda.
