After the success recorded in the first placement which took place in November 2018, Ferrovie dello Stato returns to the bond market with a second green bond with a nominal value of 700 million and duration of 7 years.
The emission, once again was successful: demand was 3,5 times supply, for 2,5 billion total orders coming 65% from foreign investors and 47% from ESG investors, sensitive to the times of sustainability.
As for the features, the new green bond has a coupon of 1,125%, with spread final 128 basis points above the rate mid swap of reference, equivalent to 16 basis points below the BTP of the same duration.
The bond received a BBB rating from S&P's and Fitch, both with a negative outlook. Banca IMI, (Intesa Sanpaolo Group) BNP Paribas, CITI, Crédit Agricole CIB, UniCredit, acted as Joint Lead Managers and Joint Bookrunners in the placement of securities.
"The great demand from the financial markets, in particular the foreign market which amounted to 65%, of the green bonds issued yesterday (4 July 2019) by FS Italiane - underlines the CEO Gianfranco Battisti - confirms the attention of investors towards the Group's commitment to sustainable, collective and integrated mobility that improves the quality of life of people who use trains for work, study, tourism and leisure. Sustainability, especially environmental sustainability, is one of the pillars of FS Italiane's 2019-2023 Business Plan, which envisages investments of 58 billion euros as a contribution to the country's economic growth. Growth that will allow an annual increase, in the period 2019-2023, of 90 million more passengers on our trains, less 600 million kilograms of CO2 emitted and less 400 cars on the roads".
Through a note, Ferrovie explains that “All the projects financed by the green bonds ensure improvements in energy efficiency, reduction of greenhouse gas emissions and so on shift modal to the train”.
The proceeds of this issue, as anticipated in the new Framework, will be destined for more than 70% topurchase of around 70 regional trains Pop e Rock. Among the financed projects there will also be electric locomotives and latest generation wagons for the transport of goods.
“With this operation – reads the company note – FS Italiane is the first broadcaster corporate to finance the purchase of rolling stock for freight transport with green bonds and the first Italian broadcaster to have obtained certification from Climate Bonds Initiative (CBI), a non-profit organization that promotes sustainable finance worldwide as a tool to combat climate change".
