Green financial management
The careful assessment of the climate-related impacts on the Group's activities is now fully embedded in the Group's most strategic processes, also including those connected with the financial management. Generali has displayed a great deal of innovation in this area.
In 2019 we issued a €750 million green bond to finance or refinance, for example, acquisition and refurbishment projects of the Group's real estate assets leading to energy optimisation. We collected final orders of over €2.7 billion, equal to around 3.6 times the offering. In 2020 the Group showed consistency with its sustainability strategy by issuing a second green bond for €600 million. Also in this case the response from investors has been very strong with final orders of over €4.5 billion.
Generali has also developed its first Green Insurance Linked Securities Framework, a scheme for structuring alternative financial instruments allowing for the transfer of insurance risk to institutional investors. We are one of the main European sponsors in this market, having sponsored two catastrophe risk bonds (Lion I Re, 2014 and Lion II Re, 2017) and one motor third-party liability risk bond (Horse Capital I, 2016).
The Green Insurance Linked Securities that we will develop on the basis of this framework will be characterised by the investment of the collateral in assets with a positive environmental impact, and by the allocation of the transferred solvency capital to sustainable initiatives.
For more details on our Green Insurance Linked Securities Framework you can read: