Terna he placed his first on Wednesday hybrid bond. It is a perpetual, subordinated, non-convertible and green bondintended for institutional investors. In all, the issued value amounts to one billion euros, in the face of a demand that has exceeded four billion.
The details of the issue
In detail, the company that manages the Italian electricity grid explains in a note, the bond will not be callable for six years and will have a price equal to 99,586%, with a spread of 212,1 basis points over the midswap rate. The annual coupon will be 2,375% until the first reset date, scheduled for February 9, 2028, and will have an effective rate of 2,45%.
The performance of the coupon
Starting from 9 February 2028, if the early repayment has not taken place, the hybrid bond will pay annual interest equal to the reference five-year Euro Mid Swap rate plus an initial margin of 212,1 basis points, increased by another 25 bp from 9 February 2033 and a further 75 from 9 February 2048.
The ratings obtained by the bond
As far as ratings are concerned, the stock has received a “BBB-” rating from Standard and Poor's, “Ba1” from Moody's and “BBB” from Scope. Taking into account the subordination of hybrid bonds and the possibility of deferring interest payments, the equity content for rating agencies is 50%.
The objectives of the placement
The net proceeds of the issue will be used to finance the company's "eligible green projects" - the company continues - to be identified on the basis of the Terna's Green Bond Framework.
The quotation and the pool of banks
An application for admission to listing on the Luxembourg Stock Exchange will be submitted for the hybrid bond.
Terna's green hybrid bond issue was placed by a syndicate of banks made up of BNP Paribas, Banca Akros, BofA Securities, Citi, Credit Suisse, IMI-Intesa Sanpaolo, Mediobanca, Santander, Société Générale, SMBC Nikko, UniCredit.
