Terna has successfully completed the placement of its first green bond intended for institutional investors. The issuance of 5-year securities for a total amount of 750 million euro received requests in excess of 4,6 billion.
Against initial indications of 105-110 basis points above the midswap rate, the deal closed at a spread of 80 basis points and the bond was priced at 99,627 for an annual yield of 1,077%.
The effective cost for Terna of the issue is therefore equal to 1,08%, compared to an overall average cost of the Plan's consolidated debt equal to 1,6%. An application for admission to listing on the Luxembourg Stock Exchange will be submitted for the green bond.
The bond will pay an annual coupon of 1% and will expire in July 2023. The issue was handled by Bank of America Merrill Lynch, Banca Akros, Banca Imi, Bnp Paribas, Credit Suisse, JP Morgan, Natixis and Unicredit.
