Snam ha successfully placed its first bond issue denominated in US dollars, raising a total of 2 billion (approximately 1,8 billion euros) through a multi-tranche placement format Sustainability-Linked. It is about first operation in the world of this type that binds the cost of debt to Net Zero target on greenhouse gas (GHG) emissions relating to Scope 1, 2 and 3.
The question was about five times higher than the offer, reaching a total of 10 billion dollars, thanks to a strong interest by international institutional investors. The offering followed a day of marketing with over 50 global counterparties, whose positive feedback supported competitive pricing conditions.
The details of the operation
The emission, intended for the US market through the 144A / Reg S format, It is divided into three tranches:
- $750 million over 5 years, with a coupon of 5,000% and an effective yield of 5,113%
- 750 million over 10 years, coupon at 5,750% and effective yield of 5,777%;
- 500 million over 30 years, coupon at 6,500% and effective yield of 6,522%.
Il weighted average rate, on a euro basis, stands at around 4%.
Joint Bookrunners include leading names in global finance, including Barclays, Goldman Sachs, JPMorgan, Citigroup, HSBC and Societe Generale.
A strategic step in funding diversification
With this Capital market debut USA, Snam strengthens its financial diversification strategy. To date, over 10% of the Group's medium-long term financing instruments are denominated in foreign currency. The issuance also contributes to increase the share of sustainable debt, which rises to 86% of total committed funding, approaching the 90% target set for 2029.
The operation is part of the Sustainable Finance Framework updated to April 2025, which includes GHG emission reduction targets up to 2050, including:
- Scope 1 and 2: -25% by 2027, -50% by 2035, -90% by 2050;
- scope 3: -35% by 2032, -90% by 2050.
The plan includes the achieving climate neutrality across all Scopes by 2050, with up to 10% covered by offsets.
“The nour first bond issue in US dollars represents an important milestone in the strategy of diversifying funding sources, accelerating sustainable finance and broadening the investor base internationally", declared the CEO of Snam, Agostino Scornajenchi. “In a context in which Snam consolidates itself as a national and pan-European infrastructure operator, strengthening our presence on global markets is essential to support our long-term growth ambitions. Thehigh interest from US fixed income investors, in addition to the large component of US shareholders in our shareholder base, confirms the strong confidence towards Snam’s sustainability strategy, financial solidity and long-term industrial vision”.
Snam stock falls after announcement
Despite the success of the operation and the high demand, the reaction on the stock market was moderate. The Snam share price is slightly down (-0,38%) at 5,204 euros.
