Snam has placed two bonds at 5 and 15 years, taking advantage of the mini-rate season. The first tranche, expiring in May 2024, will pay a 0% coupon and will give subscribers a yield of 0.069%. Expiring September 2034 will pay a 1% coupon and a 1.113% yield.
The launch of the bond loan in euro, concluded on Thursday evening, collected total orders for approximately 2,6 billion euro and envisages two tranches with maturities in May 2024 and September 2034. The first tranche envisages an issue of 500 million euro and received orders amounting to around 1 billion; the 15-year maturity received requests for 1,65 billion against an amount of 600 million euro.
Against higher initial price indications, the 2024 maturity will pay a spread of 55 basis points above the midswap (70-75 the initial indication), the 2034 maturity a spread of 103 (130-135). The banks involved in the operation are Barclays, Bnp Paribas, Citi, Goldman Sachs, Jp Morgan, Societe Generale and Unicredit in the role of joint bookrunners. Banca Imi, Bank of America Merrill Lynch, Mizuho, Morgan Stanley, NatWest are also involved in the operation.
At the end of 2019, specifies a note from Snam, the average maturity of medium/long-term debt will grow by approximately 0,7 years to over 5,5 years.
CEO Marco Alverà is satisfied with the “very successful issue – with a new zero coupon bond and the first 15-year bond in our history – which allows us to further reduce the cost of our debt and lengthen its average life. It is also a sign of appreciation by the market for the company and its development strategies in the context of the energy transition".
The bonds will be listed on the Luxembourg Stock Exchange.
