In brief
• The blue bond will help save approximately 630,000 m³ of water annually.
• This investment reflects a growing trend toward bonds with increasingly specific characteristics.
• Water as a theme—whether related to drinking water quality, drought, or flooding—is here to stay.
Published on:
24 November 2025
A2A is a multi-utility company primarily active in Northern Italy, providing solutions in energy, environmental services, and water management. The bond aims to modernize water infrastructure—such as pipelines, meters, and sensors—with a specific focus on water conservation and cleaner water. In total, this impact investment is expected to save around 630,000 m³ of water per year (unadjusted figure), equivalent to the annual water consumption of roughly 10,500 Italians.
Bosman: “What makes this investment unique is that APG, on behalf of ABP, acted as cornerstone investor and agreed on a one-to-one basis how the €75 million—part of a larger €155 million financing round with five other investors—will be allocated and how its impact will be reported. Thanks to this investment, A2A will go beyond what is legally required in terms of water conservation and water quality. The impact reporting is linked to KPIs jointly defined by ABP and APG, such as clean and efficient drinking water. That’s why this investment fits within ABP’s impact framework.”
A trend toward tailor made bonds
The origins of this deal go back to the summer of 2023, when APG’s Credits team invested on behalf of ABP in a blue bond issued by Danish energy company Ørsted, aimed at financing projects that promote healthy seas and oceans. Memon: “Since the Ørsted deal, the Credit team has been working closely with utility companies and advising banks on the required impact standards. This effort is starting to bear fruit with different utilities expressing interest.”
A2A’s bond is part of a trend toward bonds with increasingly specific characteristics, continues Memon. “It started with the rise of labeled bonds. Those gave us assurance that the proceeds would be used for green projects, and we could assess whether those projects aligned with our client’s objectives. However, the scope of labeled bonds was still quite broad. As ABP’s responsible investment framework becomes more precise—focusing on climate, biodiversity, and impact—not all labeled bonds fit our client’s criteria anymore. This impact investment in A2A proves there is indeed a opportunity for these highly targeted bonds that contribute to ABP’s impact investing ambition.”
A forward-thinking issuer
The fact that this is a private placement helps, as it ensures close interaction between investor and issuer and allows APG to influence how the funds are deployed. Bosman: “Moreover, we have known A2A for years as a solid bond issuer. They are progressive in the labeled bond space and were among the first companies to issue a bond under the new EU Green Bond Standard earlier this year—making them an innovative frontrunner.”
Here to stay
Although this blue bond is less liquid than many other corporate bonds, Memon expects there will be a market for it. “Water as a theme—whether related to drinking water quality, drought, or flooding—is here to stay. An investment like this, in a company committed to improving water infrastructure, will likely attract interest from other investors who want to learn more—just as the Ørsted investment did. Banks are now familiar with green bonds, but less so with these types of impact investments. We expect the market for impact bonds to grow in the coming years, and this deal is an important step in that direction.”