Terna, the listed company that manages the national electricity grid, has successfully launched a bond issue for 500 million euro, intended for institutional investors. The issue, which has gained favor from the market with a request of more than 3 times the offer, was created under the Euro Medium Term Notes (EMTN) Program
of 8 billion, which has been assigned a “BBB+” rating by Standard and Poor's, “(P)Baa2” by Moody's, “BBB+” by Fitch and “A-” by Scope.
The bond has a duration of 10 years and maturity on 25 September 2030, will pay a coupon of 0,375%, the lowest ever for an Italian corporate bond with this duration, and will be issued at a price of 99,502, with a spread of 65 basis points compared to the midswap and an indicative spread approximately 50 bps lower than the BTP of the same duration. The effective cost for Terna of the issue is therefore equal to 0,426% compared to an overall average cost of the consolidated net debt of the Plan equal to 1,4%.
An application for admission to listing on the Luxembourg Stock Exchange will be submitted for the bond. The operation, to serve the acceleration of investments in the Italian high voltage electricity grid, it is part of Terna's financial strategy, aimed at maximum efficiency and proactive debt management aimed at seizing all the opportunities offered by the capital market. The bond issue was placed by a syndicate of banks made up of Bnp Paribas, BofA, Goldman Sachs, IMI-Intesa Sanpaolo, Morgan Stanley, Smbc Nikko, Société Générale and UniCredit in the role of joint lead managers and joint bookrunners.
