Italian Snam issues $706mn Bond

Italian infrastructure operator Snam has issued a second Transition Bond for €600 ($706)mn with an eight-year maturity, the longest with zero coupon issued to date by an Italian corporate, it said November 30.

The proceeds will be used to finance projects in the energy transition, known as the Eligible Projects, as defined in Snam’s Transition Bond Framework published in June. The issuance, which was reserved to institutional investors, reached a demand at peak of more than €2.6bn with high quality and geographically diversified investors, it said. 

Snam CEO Marco Alvera said the result testified to the "market’s confidence in our initiatives for the energy transition, which will play a key role in our 2020-2024 plan. With this emission, we further strengthen our commitment to sustainable finance, which is a pillar of Snam’s ESG strategy to support activities aimed at enabling the decarbonisation of the system, including hydrogen, biomethane, energy efficiency and sustainable mobility.”

As part of the 2020-2024 plan, presented November 25, Snam announced its ambition to increase the percentage of sustainable finance from the current 40% to over 60% of the available funding.