Issuances of green and sustainability-linked bonds are included under Repsol’s financing strategy to fund its plan to become a carbon-neutral company by 2050. The proceeds from the green bond issuances will be used to finance Repsol’s plans to expand renewables generation capacity and green hydrogen production, which are included in the European Union’s classification of green projects. The company offered its first green bond in 2017 for initiatives to reduce its CO2 emissions by 1.2 million tons in three years.
Repsol also plans to issue transition bonds to cut the carbon footprint in its operations that would not normally qualify for green investment. This relatively new instrument will be used to fund initiatives to reduce greenhouse gas emissions from Repsol’s carbon-intensive projects, including upstream oil and gas and refining.
The Spanish energy producer will also offer sustainability-linked bonds (SLBs), which comply with principles by the International Capital Markets Association (ICMA). The SLBs will require Repsol to meet its sustainability objectives. Repsol has announced targets to cut emissions by 12% in 2025, by 25% by 2030 and by 50% by 2040.
