Crédit Agricole and ENEL sign sustainability-linked FX derivatives agreement
Crédit Agricole CIB and ENEL S.p.A have announced the signing of a unique Sustainability-Linked Foreign Exchange Derivatives framework, applicable to transactions traded among the parties in 2021.
The agreement is based on the accumulation of a sustainability premium as a result of a specific formula that links all foreign exchange derivatives transactions to ENEL’s Sustainability KPIs. This is in line with the key strategic guidelines announced in ENEL’s 2021-2023 Strategic Plan.
Thanks to this innovative framework Crédit Agricole CIB and ENEL continue to pursue their core strategy to incorporate Sustainability-linked principles into financial markets transactions, extending the application to all forex derivatives, generating a pioneer framework in the FX market. Il also paves the way for the future implementation of Sustainable principles across more financing products.
“Crédit Agricole CIB is proud to partner with ENEL in establishing the first Sustainability-Linked Forex derivative programme. Its launch is a clear success demonstrating the important role derivatives can play in sustainable finance, the transversality of the Sustainability-Linked Bonds Principles and the ever increasing innovation capacity of ENEL in sustainable finance.” commented Tanguy Claquin, Global Head of Sustainable Banking.
“The innovative feature of the agreement is connected to the ability to link ENEL long term Sustainability Targets with short term FX transactions. Moreover, the Sustainability Premium mechanism is applied to all FX derivatives traded with ENEL in 2021, enlarging the spectrum of financial transactions falling under the scope of sustainable finance.” added Carlotta Martoglio, Head of Corporate Sales Italy.
Crédit Agricole CIB is the corporate and investment banking arm of Credit Agricole Group, the 12th largest banking group worldwide in terms of tier 1 capital. Crédit Agricole CIB offers its corporate and institutional clients a range of products and services in capital markets activities, investment banking, structured finance, commercial banking and international trade. The Bank is a pioneer in the area of climate finance, and is currently a market leader in this segment with a complete offer for all its clients.
The company said that for many years Crédit Agricole CIB has been committed to sustainable development. The Bank was the first French bank to sign the Equator Principles in 2003. It has also been a pioneer in Green Bond markets with the arrangement of public transactions from 2012 for a wide array of issuers (supranational banks, corporates, local authorities, banks) and was one of the co-drafter of Green Bond Principles and of the Social Bond Guidance. Relying on the expertise of a dedicated sustainable banking team and on the strong support of all bankers, Crédit Agricole CIB is one of the most active banks in the Green bonds market.