Aeroporti di Roma successfully secures €500 million Sustainability-Linked Bond
The Sustainability-Linked Bond, which directly links the cost of debt to the sustainability results actually achieved, will be influenced by Aeroporti di Roma’s achievement or failure to meet its environmental commitments.
Aeroporti di Roma (ADR) – operator of Rome Fiumicino International Airport (FCO) and Rome Ciampino-G. B. Pastine International Airport (CIA) – has announced that it has secured a €500 million Sustainability-Linked Bond (SLB).
As a result, the two airports have become the first in the world to launch an SLB, which directly links the cost of debt to the sustainability results actually achieved. This green financing mechanism will link the availability of funding to the airports’ carbon management performance and will be focused on investment in projects with a positive environmental impact.
The bond issue is thus directly connected to environmental commitments from Aeroporti di Roma, including:
- Achieving net zero for CO2 emissions under its control (scope 1 and 2) by 2030. The main projects that will allow Rome-Fiumicino and Rome-Ciampino Airports to achieve this ambitious target are the construction of two photovoltaic plants for a total capacity of 60MW; the electrification of the entire ground-vehicle fleet; the phase out of the fossil fuel-powered cogeneration plant; and switching to bio methane for boilers from 2029
- Reducing CO2 emissions relating to access to the airports by 10 per cent by 2030 on a per passenger basis (scope 3), through the installation of more than 500 charging stations for electric vehicles and enhancing the capacity of the railway station at the airport. Furthermore, the airport operator also plans to invest in the availability of sustainable aviation fuel (SAF) for airlines by 2024.
The financial characteristics of the SLB instrument will be influenced by Aeroporti di Roma’s achievement or failure to meet these environmental commitments. Performance will be evaluated on an annual basis according to a set of Key Performance Indicators (KPIs), including the maintenance of its certification at Level 4+ (‘Transition’) under the ACI Airport Carbon Accreditation (ACA) programme. Aeroporti di Roma became the first European airport operator to obtain this certification in early 2021.
“ADR, the first airport in the world, has carried out the placement of a Sustainability-Linked bond worth €500 million,” said Chief Executive Officer of Aeroporti di Roma, Marco Troncone. “Environmental sustainability is no longer just an option but a necessity, and the decarbonisation of the sector is a goal that we take seriously.”
“This is demonstrated, above all, by having obtained, as the first in Europe and currently the only airport in Europe to have done so, the ACA Level 4 + certification, the highest in terms of greenhouse gas reduction; then, for having brought forward, with respect to the European sector target of 2050, the total elimination of our CO2 emissions to 2030; lastly, for having made our commitment mandatory and monitored within the framework of this financial operation, which is innovative on a global level,” he added.
Troncone concluded: “At present, we do not fly due to the health risks; in the near future, those who pose environmental risks will be out of business. This is why we want to be precursors in adopting solutions that preserve the connectivity of the future. Therefore, investments for the development of Fiumicino Airport will be increasingly oriented towards environmental, social and territorial sustainability, demonstrating that our sector can and must actively contribute to the recovery and resilience of our country and Europe.”
Airports Council International (ACI) Europe has hailed the announcement. Olivier Jankovec, ACI Europe’s Director General, commented: “The successful launch of the Sustainability-Linked Bond for Aeroporti di Roma shows that financial markets have trust in the ability of the airport industry to decarbonise. This is an extremely important signal under the current circumstances. We can only hope that the European Union (EU) and Public Financial Institutions will display the same confidence in us – and thus be ready to support us through our recovery. The fact that this is being measured and progressed through Airport Carbon Accreditation also speaks volumes about the credibility and standing of this unique programme.”