BAKU, Azerbaijan, March 16. Snam utilized approximately 2.7 billion euros from its new Euro Commercial Paper program, which had its maximum size increased to 3.5 billion euros in November, on sustainable finance in 2023, Trend reports.
Since the start of the year, Snam has signed medium to long-term banking sustainable financing agreements totaling 3.2 billion euros. This includes a Revolving Credit Facility (RCF) pool financing of up to 1.8 billion euros supported by the SupportItalia guarantee from SACE.
In September 2023, Snam issued its initial EU Taxonomy-aligned Exchangeable Transition Bond worth 500 million euros, convertible into around 54.5 million Italgas shares, representing 50 percent of Snam's current stake in Italgas. Furthermore, in November 2023, Snam issued an EU Taxonomy-aligned Transition bond worth 650 million euros.
By the end of December 2023, Snam's sustainable finance portion made up roughly 80 percent of committed financing, an increase from 70 percent at the close of 2022. This advancement allowed the company to reach its 80 percent sustainable finance objective, set for 2026, three years ahead of schedule. In the new Strategic Plan unveiled in January 2024, the sustainable finance target has been raised to 85 percent by 2027. The recently published Sustainable Finance Framework in early February 2024 will play a pivotal role in achieving this target. Subsequent to its release, Snam raised 1.5 billion euros through a dual-tranche bond, issuing its first green bond and the first sustainability-linked bond linked to scope 3, as well as scope 1 and 2 targets.
Snam secures public grants for project implementation, primarily focusing on decarbonization and sustainable mobility, funded through initiatives like the National Recovery and Resilience Plan (NRRP), National Complementary Plan, and various European programs. Additionally, the government has earmarked funding for critical projects such as the first phase of the Adriatic line and the enhancement of the "reverse flow" to Austria, aligning with the objectives of supply security outlined in the REPowerEU initiative. These projects are eligible for grants under the revised National Recovery and Resilience Plan.