(Finance) – Snam today successfully concluded a dual tranche Sustainability-Linked bond issue, for a total amount of approximately 1.5 billion euro equivalent. The offering raised respectively 750 million euros at 7 years and 600 million pounds at 12 years, with the latter tranche marking Snam’s debut on the UK market. Both tranches are linked to the Group’s ambitious CO2 emissions reduction targets, as defined in the recently announced Transition Plan.
Despite the challenging geopolitical context during the bookbuilding phase, the issue sparked a demand equal to approximately three times the amount offeredconfirming investor confidence in Snam’s strategy and in its commitment to sustainability and emissions reduction.
The two tranches are aligned with the climate objectives of the Group, which envisage a 25% reduction in Scope 1 and 2 emissions by 2027 and 50% by 2032. For Scope 3 emissions, Snam has committed to a reduction of 30% by 2030 and 35% by 2032.
“The success of this operation, with demand largely exceeding supply despite global geopolitical uncertainties, represents a confirmation of strong investor confidence in Snam’s strategy”, he commented Luca Passa, CFO of Snam. “The 600 million sterling tranche, the largest Sustainability-Linked issue in sterling since 2023, represents a significant step for Snam. It not only expands access to capital markets, but also supports our ambitious investment plan and our efforts to achieve the goal of 85% sustainable finance by 2027. This marks the start of pre-financing activities. -funding for next year, giving further impetus to the our commitment to a more sustainable energy future“.
The bonds were issued under Snam’s EMTN (Euro Medium Term Note) Programme, which was recently increased to 15 billion euros following approval by the Board of Directors in October 2024. The bonds will be listed on the Stock Exchange of Luxembourg.
The issue is structured in the following tranches: 750 million euros over 7 years at a fixed rate of 3.375%, with a maturity date of 26 November 2031. The issue price was set at 99.284% and the effective yield at maturity is equal to at 3.492%; 600 million pounds over 12 years at a fixed rate of 5.750%, with a maturity date of 26 November 2036. The issue price has been set at 99.512% and the effective yield to maturity is 5.807%.
This issue, we read in a note. strengthens Snam’s ongoing commitment to sustainable finance, marking an important step in the diversification of financing sources and in supporting its growth strategy, while allowing Snam to make significant progress in achieving its sustainability objectives.