Snam today placed a 300 million euro floating rate bond maturing on 17 October 2016. According to reports from the lead managers of the operation, the yield on the issue was set at 85 basis points above the 3-month Euribor rate, after an initial indication this morning of between 90 and 95 basis points above the reference rate.
The bond was priced at a reoffer of 99,91. The operation was managed by BNP Paribas alone. In July, the financial director of the company had stated that Snam does not have major refinancing needs until 2015.
"This means that the operation was an opportunity and that Snam wanted to take advantage of a market window" says a banker not involved in the placement. Last month Snam had reopened two outstanding bonds, with maturities in 2017 and 2020, for a total of 750 million euro.
By mid-morning, Snam's stock on the Stock Exchange lost 0,4%.
