Terna successfully launched today a bond issue hybrid subordinate perpetual not convertible green, at a fixed rate, denominated in euros, intended for institutional investors, for a total nominal amount of 850 million euros. The issue has gained great favor from the market with maximum request for more than 3 billion euros, about 4 times the offer, and is characterized by high quality and broad geographic diversification of investors.
Terna, the price of the green bond
The bond, structured in a single tranche, is non-convertible subordinated, green, hybrid and perpetual. The bond is not “callable” for 6 years, the issue price is set at 99,745%, with a spread of 214,2 basis points compared to the Midswap. The issue will pay a fixed annual coupon of 4,750% which will be paid until the first reset date (excluding) scheduled for 11 April 2030 and will have an effective rate of 4,800%. Starting from that date, if early repayment has not occurred, the hybrid bond will accrue annual interest equal to the reference five-year Euro Mid Swap rate, increased by an initial margin of 214,2 basis points, increased by a further margin by 25 basis points starting from 11 April 2035 and by a subsequent increase of a further 75 basis points starting from 11 April 2050.
This bond issue falls within the scope of the financial strategy outlined in the new 2024-2028 Business Plan of the company led by Josephine of Foggia and contributes to strengthening the Group's capital structure, further diversifying the investor base. The net proceeds of the issue will be used to finance the company's Eligible Green Projects, identified or to be identified on the basis of Terna's Green Bond Framework, drawn up in compliance with the "Green Bond Principles 2021" published by the Icma - International capital market association and to the European Union Taxonomy, aimed at encouraging sustainable investments.
La date foreseen for the regulation is the11 April 2024.
Terna specifies that for the bond loan in question, a request for admission to listing on the regulated market will be submitted - at the time of issue Luxembourg Stock Exchange. It is also expected that the agencies will assign a rating of Ba1/BBB- (Moody's/S&P's) and a equity content equal to 50%.
The issue was supported by a syndicate of banks composed of: Banca Akros, Bnp Paribas, CaixaBank, Crédit Agricole Corporate and Investment Bank, Goldman Sachs International, HSBC, Imi – Intesa Sanpaolo, Jp Morgan, Mediobanca, Morgan Stanley, Santander, Smbc and Unicredit Bank.
