(Alliance News) - Snam Spa announced Monday that it has successfully completed the bond issue in dual tranches under the Sustainable Finance Framework published in recent days, with Second Party Opinion from ISS Corporate.

The Green Bond tranche maturing in February 2028 for financing green projects aligned with the European taxonomy has an amount of EUR500 million and maturity on Feb. 19, 2028, with an annual coupon of 3.375 percent and a re-offer price of 99.596 percent corresponding to a spread of 70 basis points over the benchmark mid swap.

The EUR1 billion Sustainability-Linked Bond tranche matures on Feb. 19, 2034, with coupons linked to the achievement of the Scope 1&2 emissions reduction target by 2030 and premium on principal repayment linked to the achievement of the Scope 3 emissions reduction target by 2032. The annual coupon is 3.875% with a re-offer price of 99.504% corresponding to a spread of 120 basis points over the benchmark mid swap.

Snam has thus issued its first Green Bond to finance Eligible Green Projects aligned with the European taxonomy and its first Sustainability-Linked Bond linked to the scope 3 emissions reduction target, in addition to the scope 1 and 2 emissions reduction target, the company notes.

"Our significant commitment to reducing CO2 emissions is also recognized by the first global Net Zero Assessment obtained from Moody's, which certifies the alignment of Snam's decarbonization trajectory with the scenarios envisaged by the Paris Agreement. Today's transaction spiked total demand above EUR6 billion and represents a further step in our financial strategy to cover the investment plan announced last January, towards the 85 percent sustainable finance target," commented Snam CFO Luca Passa.

Snam's stock on Monday closed in the green by 1.6 percent at EUR4.36 per share.

By Chiara Bruschi, Alliance News reporter

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