Natixis CIB and Enel agree KPI-linked foreign exchange framework

Clients success

Natixis Corporate & Investment Banking and Enel Group, a multinational power company, have reached an agreement to link foreign exchange derivatives transactions between the parties to Enel’s medium-to-long term sustainability targets in accordance with Enel’s existing Sustainability-Linked Financing Framework.

Under the framework, forex options, forwards and swaps executed between Natixis CIB and Enel accumulate a sustainability incentive that Natixis CIB will transfer to Enel upon its achievement of its December 2022 renewable consolidated installed capacity objective, to be verified by an independent third party.

Cristiano Marinoni, senior solution sales, Italy and Laurent Guillaume, expert leader forex financial engineering at Natixis CIB, look back at this first agreement for Natixis CIB:

Laurent Guillaume
Is it the first time ever sustainability commitments are applied to forex market activities ?

Yes. Natixis CIB has affirmed for many years its core strategic principle to provide financing solutions (bond / loan) embracing sustainability commitments (Environmental, Social, Governance - ESG). We are now able to provide an  innovative solution which enables customers to use regular forex derivatives hedging  instruments integrating sustainable principles : Natixis Sustainability-linked Fx Derivatives.

Cristiano Marinoni
How do you support Enel in its development and transition?

This is certainly a story of success: working with Enel, I immediately realized how our companies share the same ambition to become pioneers in this newly shaping environment. Natixis CIB’s mission to make financial solutions support the ESG revolution at the hearth of our clients’ core businesses has certainly made it natural to perceive each other as real everyday partners working for a common goal.

Cristiano Marinoni
Why including the forex activities into Enel’s sustainability framework?

Despite the sophistication of the market, the vast majority of the forex activities performed by our corporate clients are of the simplest kind and represent an essential tool for them to complete their daily duties. In this respect, Enel is no exception and we deemed necessary to make the ESG values fill each and every aspect of the financial activities, forex included.

Laurent Guillaume
How did you select the key performance indicators (KPIs)?

This is a key point on which we work very closely with our Green & Sustainable Hub platform specialized in green finance: KPIs chosen must be meaningful and ambitious (“skin in the game”). We will refer to a prevailing sustainability-linked framework if the customer has one. For the selection of KPIs themselves, energy transition & climate strategies generate the most interest for Sustainability Linked FX Derivatives but there is a growing interest regarding social themes, especially for health & safety.

To conclude, Julien Duquenne, Co-Head of Green & Sustainable Finance, Origination & Advisory, EMEA, Natixis CIB said “We are proud to support Enel in reaffirming its core strategic principles and pursuing its ecological transition by providing an innovative financial solution to align its forex derivatives transactions with its sustainable principles.”

About Enel Group
The Enel Group is a multinational power company founded in Italy, specializing in renewable energy, innovation and social responsibility. The Company produces energy and distributes electricity for business and household end users globally. In more than 50 years, they have developed and extended their activities to more than 30 countries.

Julien Duquenne
Natixis CIB Co-Head of Green & Sustainable Finance, Origination & Advisory, EMEA

Laurent Guillaume
Natixis CIB Expert Leader Forex Financial Engineering
 

Cristiano Marinoni
Natixis CIB senior solution sales, Italy