Chicago, Jan. 19 – Snam SpA (Baa2/BBB+/BBB+) issued €1.5 billion of sustainability-linked bonds in two parts, according to a company notice.
The first tranche is for €850 million of 0.75% notes due June 20, 2029. Pricing at 99.435, the notes came with a spread of 60 basis points over mid-swaps.
The second tranche is for €650 million of 1.125% notes due June 20, 2034. The notes were sold at a discount of 99.762 and at a spread of mid-swaps plus 80 bps.
The notes were issued after a two-day set of meetings with fixed-income investors.
Demand reached more than €4.5 billion over the two tranches.
Snam is aiming for a carbon neutrality target by 2040 and seeking to further develop its energy transition business.
The coupon will step up on the 2029 bonds by 25 bps per year starting from June 2026 for the coupon paid in June 2027 if the company does not reduce its natural gas emissions by at least 55% through 2025 compared with a Dec. 31, 2015 baseline. Additionally, for the same series, the coupon will step up from June 2028 for the coupon paid in June 2029 if the company does not reduce its scope 1 and 2 emissions by 40% to 2027 compared to a Dec. 31, 2018 baseline.
For the 2034 notes, the coupon is tied to a scope 1 and scope 2 emission target reduction of 50% in 2030 compared to Dec. 31, 2018. The coupon steps up 25 bps if the criterion is not met starting from June 2031 for the coupon paid in June 2032.
The notes will be listed on the Luxembourg Stock Exchange.
Bookrunners for the 2029 notes are Barclays, BNP Paribas, Goldman Sachs, IMI-Intesa Sanpaolo, Mediobanca, Morgan Stanley, Societe Generale and UniCredit.
For the 2034 notes, Barclays, BNP Paribas, BofA Merrill Lynch, Goldman Sachs, Mizuho, Morgan Stanley, Societe Generale and UniCredit worked as bookrunners.
Snam is a natural gas infrastructure company based in San Donato Milanese, Italy.
| Issuer: | Snam SpA
|
| Amount: | €1.5 billion
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| Issue: | Sustainability-linked bonds
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| Trade date: | Jan. 12
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Marketing: | Investor meetings
|
|
|
| 2029 notes
|
| Amount: | €850 million
|
| Bookrunners: | Barclays, BNP Paribas, Goldman Sachs, IMI-Intesa Sanpaolo, Mediobanca, Morgan Stanley, Societe Generale and UniCredit
|
| Maturity: | June 20, 2029
|
| Coupon: | 0.75%
|
| Price: | 99.435
|
| Spread: | Mid-swaps plus 60 bps
|
|
|
| 2034 notes
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| Amount: | €650 million
|
| Bookrunners: | Barclays, BNP Paribas, BofA Merrill Lynch, Goldman Sachs, Mizuho, Morgan Stanley, Societe Generale and UniCredit
|
| Maturity: | June 20, 2034
|
| Coupon: | 1.125%
|
| Price: | 99.762
|
| Spread: | Mid-swaps plus 80 bps
|
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