Great maneuvers for the Generali group which on the same day announced a securities repurchase offer worth 1 billion euro and the issue of the first green bond in its history.
As for the repurchase, the the program provides for the repurchase by 20 September of treasury securities with “first call date in 2022, for an aggregate nominal target amount of up to €1 billion”, reads the company note.
Speaking instead of the new green bond it is a Tier 2 bond with a bullet structure and a “green” format.
“The invitation is part of Generali's proactive debt management and aims to efficiently refinance subordinated financial instruments with prime call dates between February 2022 and December 2022”. Through this transaction, Generali aims to achieve the objectives set as part of the Generali 2021 strategy, reducing external financial debt by around 250 million, decreasing interest expense over the next few years and achieving a "more balanced" debt maturity profile.
Put simply: in order to reduce debt, Generali will replace Tier 1 and 2 issues with a maximum spread of 250 points by Friday. Subsequently, the company led by Philippe Donnet will issue its first green bond.
For the Green Bond it has been fixed a deadline of 2030. The instrument will be issued pursuant to the group's Euro Medium Term Note Program and a Second Party Opinion issued by Sustainalytics. The green bond will be targeted at qualified investors.
The operation is part of Generali's environmental sustainability objectives, whose improvements have been recognized with the group's inclusion in the Dow Jones Sustainability Europe Index.
The offer of the new green bonds will finance part of the consideration due for the bonds purchased by investors, specifies Generali.
Three different phases are envisaged: the announcement of 16 September will be followed by negotiations aimed at fixing the repurchase price of the bonds. September 20 will be the date to submit purchase orders, with the final results expected to arrive three days later.
At Piazza Affari, the Generali share dropped 0,89% to 17,32 euros (Ftse Mib -1,1%).
