Snam concluded the issuance of its fourth Transition Bonds with ten-year duration. With an amount equal to 500 million euro e 0,625% coupon, the proceeds will be used to finance projects in the energy transition, the so-called Eligible Projects, as defined in the Transition Bond Framework published in June 2020.
In particular, the issue has reached a peak demand for over two and a half times the offer, with a high quality and broad geographical diversification of institutional investors.
The operation is part of the strategy of the sustainable finance of Snam, aimed at achieving carbon neutrality by 2040 and further developing its activities in the energy transition.
For the energy infrastructure company, the Transition Bonds are essential to increase the weight of sustainable finance from around 40% at the end of 2020 to over 60% of its funding by 2024, as also outlined in the strategic plan. The last Transition Bond launched by Snam dates back to February 2021 (annual coupon of 0% with a re-offer price of 100,198%). Currently, Snam has collected 2.850 million euro through the issuance of Climate Action Bonds of February 2019 and the Transition Bonds issued under the current Framework.
The obligations – reads a note – fall within the ambit of the EMTN program (Euro Medium Term Notes) by Snam from 11 billion euros approved by the Board of Directors on 12 October 2020 and will be listed on the Luxembourg Stock Exchange.
Finally, the placement was organized and directed by Barclays (as Joint Bookrunners), BNPP, CACIB, Goldman Sachs International, IMI-Intesa Sanpaolo, ING, JP Morgan, MUFG, SMBC Nikko and UniCredit.
