JPMorgan Currency Deal Highlights Finance’s Green Shift

JPMorgan Currency Deal Highlights Finance’s Green Shift

26/10/2020 By Anna Hirtenstein

Green finance is making tracks into the wonky world of foreign-exchange markets, highlighting the lengths Wall Street will go to broadcast an environmental angle on investments.

JPMorgan Chase & Co. arranged a type of currency-derivative for Italian utility Enel SpA that is linked to both companies’ sustainability targets.

Enel raised £500 million, equivalent to $652 million, from the sale of bonds in the U.K. last week. The Italian company handed the British pounds to JPMorgan, which exchanged them for €553 million in a transaction known as a cross-currency basis swap, where one party borrows currency from another and lends its own currency in return.

The bank believes it is the first such structure to incorporate promises both sides have made on the environment.

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