Snam S.p.A. (rated Baa2 by Moody\u2019s, BBB+ by S&P and BBB+ by Fitch) has successfully launched its inaugural Transition Bond, whose proceeds will be used to finance projects in the energy transition.<\/p>\n
Support industries that are transforming their economic model<\/strong><\/p>\n Let’s reiterate that a transition bond is used to finance projects with an environmental vocation but which do not tick all the boxes to enter the more restrictive framework of green bonds, which appeared more than ten years ago now.<\/p>\n However, these instruments follow the main principles of “green bonds”, that is to say a precise marking of the projects financed and a commitment to regular reporting on the use of funds.<\/p>\n Success was there<\/strong><\/p>\n The idea of \u200b\u200bsupporting companies in the energy sector is generally welcomed by investors, as shown by the success of recent transactions carried out recently.<\/p>\n This is also the case for the Italian group Snam. The issuance, which Marco Alver\u00e0, Snam\u2019s CEO, said : \u00ab The success of our first Transition Bond, a market in which we are a global frontrunner, is a sign of the market\u2019s trust in our energy transition initiatives, and encourages us to proceed along this path with even greater determination \u00bb.<\/em> <\/p>\n Through issuing this Transition Bond, which follows the Climate Action Bond issued in February 2019, Snam aims to ensure the company\u2019s financial strategy is fully aligned with the energy transition through its sustainability objectives, as well as to further expand its investor base.<\/p>\n Amount: 500 M\u20ac<\/p>\n Maturity: 17 June 2030<\/p>\n Yield: annual coupon of 0.75% with a reoffer price of Bookrunners of the placement: Banca IMI, BBVA, BNP Paribas, BofA Merrill Lynch, Goldman Sachs, JP Morgan, MUFG, Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and UniCredit.<\/quote><\/p>\n","protected":false},"excerpt":{"rendered":" This Italian gas transport group has just issued in June 2020 a transition bond, a bond intended to support the transformation of carbon-intensive industries.<\/p>\n","protected":false},"author":21,"featured_media":95519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1849,1671,1826,1682,1651,1437,1453,1452,2103,1952,1685],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/95521"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=95521"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/95521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/95519"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=95521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=95521"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=95521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nis reserved to institutional investors, reached more than three times
\noversubscription by high quality and geographically diversified institutional
\ninvestors.<\/p>\n
\nFeatures of the Transition Bond are as follows:<\/strong><\/p>\n
\n99.856% (equivalent to a spread of 80 bps over the reference mid swap rate)<\/p>\n