Terna successfully places a new 650 million ten-year green bond

Terna successfully places a new 650 million ten year green bond

(Tiper Stock Exchange) – Triad today successfully launched a green bond issue, single tranche, in Euros, at a fixed rate and for a nominal amount of 650 million Euros.

The issue, which has gained great favor from the market with a maximum request equal to about four times the offer, is characterized by high quality and broad geographical diversification of investors. The launch of the green bond was carried out as part of Terna’s Euro Medium Term Notes (EMTN) programme, the total amount of which is equal to Euro 9,000,000,000 and which has been assigned a “BBB+” rating by Standard and Poor’s and ” (P)Baa2” from Moody’s.

The green bond provides a duration of 10 years and expiring on July 24, 2033, will pay a annual coupon equal to 3.875% per year and will be issued at a price of 99.107%, with a spread of 90 basis points over the midswap. The final cost of the bond will be significantly lower than the issue cost, thanks to the previous subscription of interest rate hedging instruments for lower values ​​than current conditions.

The date of regulation issuance is scheduled for July 24, 2023.

The net proceeds of the issue will be used to finance the Company’s so-called “eligible green projects”, identified or to be identified on the basis of Terna’s Green Bond Framework, drawn up in compliance with the “Green Bond Principles 2021” published by the International Capital Market Association and the European Union Taxonomy, aimed at promoting sustainable investments.

The company specifies that for the bond loan in question, a request for admission to listing on the regulated Luxembourg Stock Exchange will be presented at the time of issue.

The strategy of the Group led by Ing. Giuseppina Di Foggia therefore confirms her orientation towards combining sustainability and growth, to favor the energy transition underway and generate ever greater benefits for the country and for all its stakeholders. In this regard, Terna has prepared and published a Green Bond Framework in order to facilitate the transparency and quality of the green bonds issued.

The operation was supported by a syndicate of banks, within which the following acted as joint-bookrunners: BofA Securities, BNP Paribas, Deutsche Bank, IMI-Intesa Sanpaolo, Mediobanca, Santander, Société Générale, UniCredit.

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