The issue was successfully concluded by Snam of a sustainable financing of 1,5 billion of euros, in dual tranches format: the first Green Bond of 500 million euros and a Sustainability-Linked Bond of 1 billion euros.
Snam: demand 4 times the supply
According to what was communicated by the company, the overall demand for the two tranches of the issue reached a peak above 4 times the offer, exceeding 6 billion euros.
The Green Bond has expires February 2028 and an amount of 500 million, with an annual coupon of 3,375% with a re-offer price of 99,596% (corresponding to a spread of 70 basis points on the reference mid swap).
Il Sustainability-Linked Bond has an expiry date February 2034 with coupons linked to the achievement of the Scope 1&2 emissions reduction target by 2030 and a capital reimbursement bonus linked to the achievement of the Scope 3 emissions reduction target by 2032. The amount is equal to 1 billion euros; annual coupon of 3,875% with a re-offer price of 99,504% (corresponding to a spread of 120 basis points on the reference mid swap).
Snam: "A step forward in the strategy to cover the investment plan"
With this operation, the group underlines in a note. “Snam has issued its first Green Bond for the financing of Eligible Green Projects aligned with the European taxonomy and its first Sustainability-Linked Bond linked to the target on reduction of scope 3 emissions, as well as the target on the reduction of scope 1 and 2 emissions".
“Following the presentation of the strategic plan at the end of January and the recent publication of the new Sustainable Finance Framework, we have successfully placed the first Green Bond with investments aligned with the European taxonomy and the first Sustainability-Linked Bond linked to scope 3 emissions. Our significant commitment to the reduction of CO2 emissions it is also recognized by the first global Net Zero Assessment obtained by Moody's which certifies the alignment of Snam's decarbonisation trajectory with the scenarios envisaged by the Paris Agreement. Today's operation was recorded an overall peak demand of more than 6 billion euros and represents a further step in our financial strategy to cover the investment plan announced last January, towards the objective of85% sustainable finance” – commented the Snam CFO Luca Passa.
