Sustainability-linked bonds are bond instruments whose financial and structural characteristics, usually the coupon, are linked to previously defined sustainability goals. Similar to green bonds, these targets are quantified through the use of Key Performance Indicators (KPIs) and evaluated against specific Sustainability Performance Targets (SPTs) established in advance.
SLBs are not linked to the execution of a single sustainability project. Proceeds from the issuance of these bonds can be used for general purposes and are geared toward a global strategy based on the UN Agenda 2030 Sustainable Development Goals, with measurable targets year after year.
On 5th December 2023 CAP Group successfully placed on the market a bond structured as a Sustainability-linked bond reserved for institutional investors with a value of 105 million euros and a term of 15 years.