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Snam has successfully issued its debut dual-tranches Sustainability-Linked Bond (SLB) for 1.5 billion euros

Price sensitive

Peak demand of the two tranches was 3 times oversubscribed

 

San Donato Milanese (Milan), January 12 th, 2022 – Snam (rating Baa2 per Moody's, BBB+ per S&P e BBB+ per Fitch) today successfully launched its first Sustainability-Linked Bond issue totaling 1.5 billion euros, in two tranches of 850 million euros (maturing June 2029) and 650 million euros (maturing June 2034).  

The issuance followed a two-day set of meetings with fixed income investors as part of the company’s recently updated Sustainable Finance Framework published on November 29 th, 2021.

The issuance, reserved to institutional investors, reached a peak aggregated demand of more than 4.5 billion euros, supported by high quality and geographically diversified investors.

Today's transaction is in line with Snam's commitment towards sustainable finance as a key pillar of its strategy which includes a carbon neutrality target by 2040 and the further development of its energy transition businesses. It will also contribute to the target of achieving more than 80% of its funding through sustainable finance by 2025 compared to 60% as of end 2021.

 

The features of the two tranches are as follows:

Tranche A- Jun-29 :

Amount:  850 million euros

Maturity: June 20 th, 2029

Annual coupon of 0.75%. The reoffer price is 99.435% (equivalent to a spread of 60 bps over the reference mid swap rate).

The coupon will step up by 25 bps per year, starting from June 2026 for the coupon paid in June 2027, in the case of non-achievement of the natural gas emissions reduction target (-55% to 2025 compared to  December 31 st, 2015), or starting from June 2028 for the coupon paid in June 2029 in the case of non-achievement of the Scope 1 and 2 emissions reduction target only (-40% to 2027 compared to 31 December 2018).

 

Tranche B- Jun-34 :

Amount:  650 million euros

Maturity: June 20 th, 2034

Annual coupon of 1.25% The reoffer price is 99.762% (equivalent to a spread of 80 bps over the reference mid swap rate).

The coupon will step up by 25 bps per year, starting from June 2031 for the coupon paid in June 2032, in case the Scope 1 and 2 emission reduction target (-50% in 2030 compared to December 31 st, 2018) is not reached.

 

The notes are issued under Snam's 12 billion euros EMTN (Euro Medium Term Note) programme which was approved by the Board of Directors on October 11 th, 2021 and will be listed on the Luxembourg Stock Exchange.

 

Bookrunners of the offering are:  

  • for the Jun-29 tranche: Barclays, BNP Paribas, Goldman Sachs, IMI-Intesa Sanpaolo, Mediobanca, Morgan Stanley, Société Générale and UniCredit;
  • for the Jun-34 tranche: Barclays, BNP Paribas, BofA Merrill Lynch, Goldman Sachs, Mizuho, Morgan Stanley, Société Générale and UniCredit.

  

DISCLAIMER

This announcement (and the information contained therein) does not constitute or form part of any offer to sell nor a solicitation of any offer to buy any securities nor shall there be any offer of securities in any jurisdiction in which such offer or sale would be unlawful. It may be unlawful to distribute this announcement in certain jurisdictions. This announcement does not constitute an offer of securities for sale in the United States, Canada and Japan and in any jurisdiction in which such offer or sale would be unlawful and is not for publication or distribution in any such jurisdictions. The securities referred to in this announcement have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This announcement is not a public offer of financial products in Italy as per Article 2, letter (d), of Regulation (EU) 2017/1129. The documentation relating to the offer has not been/will not be submitted to the approval of CONSOB.

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updated
12 January 2022 - 19:33 CET