The bond race starts again. Once the holidays are over, 2024 gets off to a flying start with three bond issues in a single day. Monday, in addition to Eni's 1 billion bond which received a boom in orders, also Generali and Mediobanca have successfully carried out two bond issues
Generali places 2 green bonds and raises over 2 billion
Generali placed on Monday two green bonds with expiration respectively January 2029 and January 2034, both issued as part of its Emtn program.
The first green bond has an amount of 500mila euros, the second of 750mila euros.
“The operation – explains the company in a note – is in line with Generali's commitment to sustainability. An amount corresponding to the net proceeds of the 2029 Securities and the 2034 Securities will, in fact, be used to finance/refinance 'Eligible Green Projects'".
They were collected during the placement phase total orders amounting to more than 2 billion from over 80 highly diversified international institutional investors. Generali underlines that "both issues aroused strong interest from international investors", who represented over 80% and 90% of the orders placed for the 2029 and 2034 securities respectively. 35% of the 2029 green bonds were allocated to Italian and French investors, 30% to investors in Germany, followed by Spain and Portugal with 13%.
Considering instead the green bonds to 2034, 30% was allocated to UK investors, around 30% to Italian and French investors, followed by German investors who represented around 22%.
According to the cfo of Generali, Cristiano Borean, “the excellent outcome of the placement of today's two green issues is further confirmation of Generali's solid financial position and our approach to sustainability. Following this operation, the group appears to have placed a total of eight bonds with ESG characteristics. It is expected that, by the end of 2024, 'green' and 'sustainable' bonds will represent approximately 40% of all our outstanding financial debt.
Orders for 1,4 billion for Mediobanca's covered bond
Also on Monday, Mediobanca concluded the placement of a 750 million 5-year covered bond. The title pays one coupon equal to 3,25% and has a yield equal to the midswap plus 65 basis points. The orders reached 1,4 billion, allowing the yield to be reduced compared to initial indications (midswap +70 basis points).
According to information provided by Piazzetta Cuccia, 70% of the orders came from abroad, "with the presence of all the major European investors, further demonstrating the consolidated role of Mediobanca as an issuer at continental level".
“The success of this new issue, 70% subscribed by foreign investors, is further testimony to the market's trust and appreciation towards Mediobanca and towards the growth prospects outlined in the 'One Brand One Culture' strategic plan to 2026 – he commented iDirector Francesco Saverio Vinci -. A result that further strengthens our determination to pursue the set objectives."
