(Finance) – Snam (Baa2 rating for Moody’s, BBB+ for S&P and BBB+ for Fitch) concluded successfully today the issuance of bonds in dual tranches as part of the Sustainable Finance Framework published in recent days, with Second Party Opinion (SPO) by ISS Corporate.
In detail, with this operation, Snam has issued his first Green Bond for the financing of Eligible Green Projects aligned with the European taxonomy and a Sustainability-Linked Bond linked to the target on the reduction of scope 3 emissions, as well as the target on the reduction of scope 1 and 2 emissions.
“Following the presentation of the strategic plan at the end of January and the recent publication of the new Sustainable Finance Framework, we have successfully placed the first Green Bond with investments aligned with the European taxonomy and the first Sustainability-Linked Bond linked to scope 3 emissions. Our significant commitment to the reduction of CO2 emissions is also recognized by the first Net Zero Assessment at a global level obtained by Moody’s which certifies the alignment of Snam’s decarbonisation trajectory with the scenarios envisaged by the Paris Agreement. Today’s operation recorded an overall peak demand of more than 6 billion euros and represents a further step in our financial strategy to cover the investment plan announced last January, towards the objective of 85% sustainable finance”, he commented Snam CFO Luca Passa.
The Green Bond has expires February 2028 and an amount of 500 million for the financing of green projects aligned with the European Taxonomy: Annual coupon of 3.375% with a re-offer price of 99.596% (corresponding to a spread of 70 basis points on the reference mid swap).
The Sustainability-Linked Bond has an expiry date February 2034 with coupons linked to the achievement of the Scope 1&2 emissions reduction target by 2030 and a capital reimbursement bonus linked to the achievement of the Scope 3 emissions reduction target by 2032. The amount is equal to 1 billion euros; annual coupon of 3.875% with a re-offer price of 99.504% (corresponding to a spread of 120 basis points on the reference mid swap).
The operation is in in line with Snam’s commitment in recognizing sustainability as a key role in its strategy which includes, among others, the objectives of achieving carbon neutrality by 2040 and to further develop its activities in the energy transition. With today’s issues, Snam is moving towards the new objective of obtaining 85% of its financing through sustainable finance instruments by 2027, after having already reached the 80% target expected for 2026.