Terna e Ubi have placed on the market two green bonds of 500 million euro each, both intended for institutional investors.
The term of the bond issued by company that manages the electricity grid it is for seven years, with a deadline set for 10 April 2026. Demand is very high, exceeding supply by about seven times.
A coupon of 1,000% will be paid on the bond. The bond will be issued at a price of 99,886%, with a spread of 78 basis points over the midswap rate and an indicative spread approximately 100 basis points lower than the BTP of the same duration. The effective cost for Terna of the issue is therefore equal to 1,02% compared to an overall average cost of the consolidated Plan debt equal to 1,6%.
For Terna's green bond, a request will be presented for admission to listing on the Luxembourg Stock Exchange.
The stock has been rated BBB+ by Standard and Poor's, Baa2 by Moody's and BBB+ by Fitch. The bond issue was placed by a syndicate of banks made up of Banca IMI, BNP Paribas, Citi, Goldman Sachs, Mediobanca, Santander and Unicredit.
As it regards instead Ubi's green bond, the security has a five-year maturity and, explains the Bank, will go to refinance a selected project finance portfolio (0,5 billion euro out of a total of 1,3 billion) in the renewable energy sectors, essentially focused (86% ) on solar and wind energy.
Ubi will publish a report on the allocation of proceeds and on the environmental benefits generated by the financed projects each year, for the entire duration of the bond.
Demand, coming from about 150 investors, reached 1,5 billion euros, of which 73% from abroad, mainly from France (35%), Germany/Austria (13%), Nordic countries (12%) , UK/Ireland (6%) and Spain/Portugal (5%). Subscription by funds is prevalent (68%).
The fixed coupon of 1,5% will be paid in arrears on April 10 of each year starting from 2020.
"This inaugural issue - explains Victor Massiah, managing director of the group - represents a further step in the pursuit of a corporate strategy that is increasingly inclusive of sustainability issues".
