Repsol to present new green “transition” framework to investors

(Reuters) Spanish oil and gas firm Repsol (REP.MC) has hired banks to present a new transition financing framework to investors that will allow the company to issue sustainability-linked bonds, according to a lead manager on Monday.

HSBC and Natixis have been appointed to help the Spanish firm present the new framework to investors from June 21-23, the lead manager said in a message to investors seen by Reuters.

Under this framework, Repsol would be able to issue sustainability-linked bonds, green bonds and so-called “transition” bonds.

Repsol became one of the first oil companies to issue a green bond back in 2017, but was criticised at the time for using that label to raise money which would be spent improving the efficiencies of its refineries.

The debt was excluded from the main green bond indices at the time as as it did not meet the requirements of Climate Bonds Initiative, a London-based not-for-profit that provides sustainability data for investors.

Since then, a large financing sector has opened up around so-called “transition” bonds – debt issued by polluting companies that are attempting to make a transition towards a more sustainable operating framework.

“With its new Transition Financing Framework, Repsol fully incorporates its sustainability roadmap into its financing strategy and takes a key step forward in its commitment to become a net zero emissions company by 2050,” Repsol said in a statement on Monday.

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