As soon as the bond market came alive after the Christmas break, leading the way were the emblazoned emissions of Enel and Mediobanca, stormed by investors.
Enel saw orders that exceeded the 2,4 billion issuance by 2,75 times “sustainable” bonds, divided into three tranches maturing respectively in 2025, 2031 and 2035. All with a settlement date of 17 January.
In detail. There first tranche with a fixed coupon of 0,25% it was placed for 1,25 billion euro at a price of 99,829 for a gross yield to maturity of 0,295%. There second tranche with a fixed coupon of 0,875%, it was placed for 750 million at a price of 98,70 and a gross yield of 1,027%. Finally, the third tranche with a fixed coupon of 1,25% it was placed for 750 million at a price of 99,334 and a gross yield of 1,306%.
“Emissions have seen a significant Participation of Socially Responsible Investors (SRI)" says Enel in a note "allowing the Group to continue to diversify its investor base".
They led the operation as joint-bookrunner Banca Akros, Barclays, BBVA, BNP Paribas, CaixaBank, Citi, Goldman Sachs, HSBC, IMI-Intesa Sanpaolo, ING, JP Morgan, Natixis, Santander and Unicredit.
In the press release, Enel explains that the new issue is linked to the achievement of the target of sustainability which is expressed in the reduction of direct greenhouse gas emissions (Scope 1), contributing to the sustainable development goal 13 (Fight against climate change) of the United Nations and in compliance with the Group's Sustainability-Linked Financing Framework. Furthermore, the new bond contributes to the achievement of the Group's objectives linked to the ratio between sources of sustainable financing and the total gross debt of the Group itself, set at approximately 65% in 2024 and over 70% in 2030.
Just yesterday the board of directors of Enel had approved the issue of bonds for this year up to a maximum of 3 billion euros.
In the financial segment, however, the issue of Mediobanca from 500 million which saw orders for over 1.1 billion Euros. It is a senior preferred bond with a maturity after 7,5 years and a fixed coupon of 1%, but with a call option fixed after 6,5 years (July 2028) with the coupon becoming floating rate indexed to the Euribor rate at three months. The bond was priced at 99,472 with a yield equal to 90 basis points above the midswap rate.
40% of the bond – which is part of Mediobanca's medium-long term issuance program (Emtn) worth 22 billion announced on December 84 – was placed abroad, according to a note from the issuer.
The senior "preferred" are bonds that have precedence in the event of a "bail-in" as regards the repayment both with respect to the shares and with respect to the other "unsecured" or subordinated bonds,
