Snam has started a new fixed-rate bond issue, maturing in 2028 for an expected amount of 500 million euros. It's about the second transition bond issued by the company led by Marco Alverà after that of last June 10th. The placement is part of the EMTN (Euro Medium Term Notes) program approved by the Board of Directors on 12 October 2020. The bonds will be listed on the Luxembourg Stock Exchange.
As for the price, the initial indications speak of 70 basis points above the mid swap.
“The issue – explains Snam in a note – is of a transition nature: the proceeds will be used for finance projects in the energy transition, the so-called Eligible Projects, as defined in the Transition Bond Framework published on 9 June 2020".
The placement is aimed at institutional investors and is organized and managed, as bookrunners and joint Lead Managers, by BNP Paribas, Crédit Agricole CIB, ING, Intesa Sanpaolo, Mizuho, Mediobanca – Banca di Credito Finanziario SpA, MUFG, Société Générale, SMBC Nikko Capital Markets Europe GmbH and UniCredit Bank AG.
This new issue, underlines the company, bears witness to Snam's commitment "to sustainable finance to support the growing initiatives in the energy transition". We recall that in plan to 2024 presented on 25 November, Snam announced its intention to increase the weight of sustainable finance from the current 40% to over 60% of the available funding.
In addition to the new issue, Snam launched today a purchase offer (Tender Offer) aimed at holders of the following bonds already issued by Snam under the Euro Medium Term Note programme:
- €300.000.000 Floating rate, maturing in February 2022, of which €300.000.000 outstanding (XS1568906421)
- €1.000.000.000 5,250%, maturing on 19 September 2022, of which €601.790.000 outstanding (XS0829190585)
- €750.000.000 1,500%, maturing on April 21, 2023, of which €246.284.000 outstanding (XS1126183760)
- €900.000.000 1,000%, maturing on 18 September 2023, of which €595.582.000 outstanding (XS1881004730)
- €750.000.000 1,375% maturing on November 19, 2023, of which €195.204.000 outstanding (XS1318709497)
- €600.000.000 3,250%, maturing on January 22, 2024, of which €389.854.000 outstanding (XS1019326641)
- €350.000.000 Floating rate, maturing on 2 August 2024, of which €350.000.000 outstanding (XS1657785538)
- €500.000.000 1,250% maturing on January 25, 2025, of which €392.447.000 outstanding (XS1555402145)
THEmaximum amount accepted will be defined and communicated by Snam according to the terms and conditions contained in the Tender Offer Memorandum of 30 November 2020. A priority allocation mechanism may also be applied to the tender offers for the holders of the existing bonds subject to the tender offers who manifest the intention to subscribe to the new bonds.
“Snam, through this operation, intends to continue the path of optimization of the debt structure and continuous improvement of the cost of capital, in line with its objectives”.
