Terna he placed on Friday a 500 million euro green bond. The issue, reserved for institutional investors, obtained a demand equal to over two billion euros, four times the offer. The company that manages the Italian electricity grid announced it in a note, specifying that the new bonds are placed "in the context of the Euro Medium Term Notes (EMTN) Program" of eight billion euros," which has been assigned a BBB+ rating by Standard and Poor's, (P)Baa2 by Moody's and BBB+ by Fitch and A- by Scope”.
The deadline of the green bond is set in 12 years, on July 24, 2032, and the price is equal to 99,623%, with a spread of 90 basis points over the midswap rate. On the issue, Terna will pay a coupon by 0,75%. “The effective rate it will be 0,78% – continues the note – the lowest ever obtained among Italian corporates both for green bonds and, in general, for issues over 10 years, testifying to Terna's leadership role in sustainable finance, and will be lower than the overall average cost of the consolidated debt of the Plan equal to 1,4%”.
The proceeds will go to finance the company's "eligible green projects". Terna's strategy aims to "promote the energy transition underway and generate ever greater benefits for the country and all the stakeholders - continues the note - In this regard, Terna has published a "Green Bond Framework" to facilitate the transparency and quality of green bonds issued. This Framework and the "second party opinion", prepared by the independent advisor Vigeo Eiris, are available to the public on the company website".
The new green bond will be listed on Luxembourg Stock Exchange. The bond issue was placed by a syndicate of banks comprising Banca Akros, Banca Imi, Bnpp, Citi, Credit Suisse, JP Morgan, Mediobanca, Santander and Unicredit in the role of joint lead managers and joint bookrunners.
Terna has already issued 1,5 billion green bonds - in 2028 and 2019 - and this is the group's third issue.
To learn more: Terna, green bond for 1,5 billion: sustainability also passes through here
