All its outstanding SLBs are tied to two Sustainability Performance Targets (SPTs): reductions in Scope 1 + 2 emissions and Scope 3 emissions versus a 2020 baseline.
However, the observation dates for these targets vary across instruments, and appear to be driving subtle pricing differences that could reveal investors’ expectations on the likelihood of step-ups.
AFII’s analysis of TDC Net’s bond curve shows that spreads between its 2031s and 2032s are flat. This means the latter are trading slightly tighter than the former on a relative basis, which in turn could imply that investors believe the 2032s have a higher probability of triggering a coupon step-up. This may imply that the longest dated Scope 3 target, in 2029, is the most ambitious.
The newly issued 2033 SLB references the same SPTs as the 2032s, suggesting similar market expectations for its pricing trajectory as it settles into secondary trading.
