The Roadmap for KPI-linked Bonds in 2020

Twelve years after the first self-labelled green bond issuance, the sustainable debt capital market continues its own constant transformation. The newest innovation is KPI-linked general purpose bonds, with the utility ENEL sparking discussions by issuing the inaugural target-linked bond supporting the Sustainable Development Goals (SDGs). KPI-linked bonds differ from classical green and sustainability bonds in that they allow financing outside of specific projects or use of proceeds categories.