Il Italian FS Group has issued its sixth green bonds for a nominal value of 1,1 billion euro with a 4-year maturity. There coupon was set at 3,75% with spread 158,5 basis points above the benchmark mid-swap rate. Foreign investors in particular (equal to 67% of the total) and above all Germany, the United Kingdom and France bet on the new green bond. Overall, the market demand exceeded 2,1 billion euros and involved more than 150 orders from investors, with a strong presence also of ESG investors, equal to 65% of the entire placement.
In detail, the issue will be dedicated to financing Eligible Green Projects in accordance with the provisions of the FS Green Bond Framework updated in June. The use of the proceeds of the bond – with deadline April 14, 2027 – will be aimed at financing the purchase of new electric trains for national and international services, as well as high-speed works on the railway infrastructure as well as – for the first time – investments for the completion of RFI's Turin-Milan-Naples high-speed network .
The operation was followed by a pool of banks composed of Banca Akros, Barclays, Bnp Paribas, Credit Agricole, Goldman Sachs International, Hsbc, IMI- Intesa Sanpaolo, Morgan Stanley e Unicredit who acted as joint bookrunners.
FS green bond, boom in requests: 65% from ESG investors
The large presence of ESG investors "made it possible to close the transaction with the largest size ever for an Emtn share of FS", explains the Group in a note, adding that "the high demand, especially from non-domestic investors , represents a positive signal for FS and for Italy in a highly volatile and complex market. The progress of the operation and the order book in fact, they attest to the interest in the Group and its ten-year Business Plan, recognizing its strategic role in relaunching the country and its crucial commitment to facilitating the green transition through more sustainable mobility”.
All financed investments meet the criteria of EU taxonomy, as confirmed by the second party opinion of Sustainalytics.
