Milan-listed energy group Edison has launched an ESG-Linked credit securitization program. The transaction is structured in collaboration with Crédit Agricole CIB Italy, with which Edison Energia already has a framework agreement in place with which the bank takes over part of Edison Energia’s trade receivables. The previous agreement has now been modified to index the terms of the transaction to the achievement of specific sustainability indicators (KPIs) identified by Edison as part of its ESG commitments (see the press release here). The operation is specifically dedicated to the retail credit segment.
The Edison group regularly carries out “without recourse” trade receivables on a monthly revolving basis and through the “without recourse” transfer of credit risk. In the FY 2020 Statements we read that during the year these transactions were carried out for a total value of 3.503 billion euros (from 4.068 billion in 2019). In the first half of 2021, however, these transactions were carried out for a total value of 2.2 billion (from 1.876 billion in the first half of 2020), we read in the Half-Year Report as at 30 June 2021.
More in detail, Credit Agricole CIB, through the subsidiary Ester Finance Titrisation sa, has been buying credits from Edison Energia spa for years, securitized through its securitization spv ItalAsset Finance srl (see here the notice in the Italian Official Gazette of December 2020 and here a another notice relating to an operation already in 2018).
That said, Edison and Crédit Agricole CIB Italy have now launched a securitization program different from the previous ones, where the securitized credits meet specific ESG criteria.
Ivana Bonnet, Senior Country Officer for Crédit Agricole CIB Italy., Commented: “Crédit Agricole CIB is delighted to collaborate with Edison in the creation of the first Italian ESG-Linked credit program. The structuring of this transaction with Edison is undoubtedly consistent and fully aligned with the commitment of Crèdit Agricole CIB on the issue of sustainability and represents a further step forward in the path undertaken by the bank to accompany its partners in the adoption of tools related to ESG issues “.
Didier Calvez, Edison’s Chief Financial Officer, added: “Sustainability is an integral part of Edison’s strategic development which, thanks to Crédit Agricole CIB, also declines this commitment in the financial sphere. Carrying out an ESG-linked securitization transaction for the first time in Italy further strengthens our commitment to ESG objectives, in particular those to combat climate change “.