Snam has successfully concluded the issuance of its first EU Taxonomy-Aligned Transition Bond, the proceeds of which will be used to finance projects in the energy transition, and more precisely the so-called "Eligible Projects" defined in the Sustainable Finance Framework published in November 2021, reports the company in a note.
The characteristics of the bond
The issue has an amount of 300 million, expires on December 5, 2026 and has annual coupon of 3,375% with a re-offer price of 99,577% (corresponding to a spread of 75 basis points on the reference mid swap).
“The operation is in line with Snam's commitment in the sustainable finance as a key element of its strategy which includes, among others, the objectives of achieving carbon neutrality by 2040 and further developing its activities in the energy transition. Furthermore, the transaction will contribute to Snam's objective of obtaining over 80% of its loans through sustainable finance instruments by 2025, compared to 60% at the end of 2021", Snam said in a note.
The obligations fall within the scope of the EMTN program (Euro Medium Term Note) by Snam for 13 billion euro approved by the board of directors on 12 October 2022 and will be listed on the Luxembourg Stock Exchange.
The placement was organized and directed, as Sole Bookrunner, by Goldman Sachs International.
