More ESG bond-risk trigger events likely

LONDON: The market for sustainability-linked bonds (SLBs), which is worth more than US$250bil, looks set to witness a rare trigger event as its biggest issuer appears on track to miss a key target tied to the debt.

Enel SpA, which has close to US$11bil in SLBs that may be affected, is “highly unlikely” to meet an end of 2023 carbon-emissions goal after changes to European energy policy resulted in the delayed phase-out of coal plants, according to the Anthropocene Fixed Income Institute.