Snam organizes calls from bond investors to optimize the financial structure

BAKU, Azerbaijan, January 11

By Leman Zeynalova – Trend:

Italian Snam SpA has mandated Barclays, BNP Paribas and Goldman Sachs as global coordinators and ESG structuring advisers to organize a series of calls to fixed income investors targeting a new bond issue, Trend reports with reference to the company.

It would seem that these transactions aim to optimize the financial structure of the company and to increase the weight of sustainable finance which should reach more than 80% of the total financing of the company in 2025.

An inaugural offering of benchmark double-tranche sustainability bonds in EUR with maturities of 7 years (June 2029) and 12 years (June 2034) is expected to follow, subject to market conditions. The operation will be launched as part of Snam’s € 12 billion Medium Term Note program.

The Sustainability-Linked Bonds will consider the achievement of sustainable goals, as defined in its sustainable finance framework, published on November 29, 2021.

In addition to the above, a takeover bid was launched today to the holders of bonds already issued by Snam SpA within the framework of its EMTN program, namely:

€ 750,000,000 1.500%, maturing April 21, 2023, including € 190,133,000 (XS1126183760)
900,000,000 € 1,000 percent, maturing September 18, 2023, of which € 521,687,000 outstanding (XS1881004730)
€ 750,000,000 1.375%, maturing November 19, 2023, of which € 167,396,000 outstanding (XS1318709497)
€ 600,000,000 3.250%, maturing January 22, 2024, of which € 384,734,000 outstanding (XS1019326641)
€ 500,000,000 1.250%, maturing January 25, 2025, of which € 338,648,000 outstanding (XS1555402145)
€ 650,000,000 1.375%, maturing October 25, 2027, of which € 650,000,000 in circulation (XS1700721464)

The maximum aggregate amount accepted will be determined and announced by Snam in accordance with the terms and conditions of the Tender Offer Memorandum dated January 10, 2022, subject to the applicable offer and distribution limitations.

A priority allocation mechanism may also be applied to takeover bids in respect of holders of existing bonds subject to public bids expressing their intention to subscribe to the new bonds.

Through these two transactions, Snam continues to optimize its debt structure and the cost of capital, thus increasing the use of sustainable finance in relation to total financing (today at 60%) with the objective of exceed 80% by 2025.

Follow the author on Twitter: @Lyaman_Zeyn

Marianne R. Winn