TAP’s Italian shareholder issues its first Climate Action Bond
Baku, Azerbaijan, Feb.22
By Leman Zeynalova – Trend:
Italy’s Snam S.p.A., one of the shareholders of the Trans Adriatic Pipeline (TAP) project, has successfully launched today its first Climate Action Bond, Trend reports citing the company’s website.
The proceeds of this bond will be used to finance and, partially, refinance Eligible Projects as defined in Snam’s Climate Action Bond Framework, said the company.
“The issuance, which is reserved to institutional investors, was approximately 5 times oversubscribed by high quality and geographically diversified institutional investors. Features of the Climate Action Bond are as follows: amount: 500 million euro; maturity: 28 August 2025; annual coupon of 1.25 percent,” reads the message.
Reportedly, the reoffer price is 99.489 (equivalent to a spread of 103 bps over the reference mid swap rate).
“The success of today’s issuance, the first Climate Action Bond in Europe, confirms the strategic importance of our commitment to energy transition and sustainable development, boosted by the recent launch of Snamtec project in order to create the future energy company. The proceeds from the Climate Action Bond will be used to fund both our green investments in biomethane and energy efficiency and also those aimed at improving the environmental impact of Snam’s activities, in the light of the target of reducing our methane emissions by 25% by 2025”. Snam’s objectives in issuing the first Climate Action Bond in Europe are to consolidate Snam’s role in the energy transition in Europe, to promote investor awareness of Snam’s ESG (environment, social and governance) initiatives and investments and to diversify its investor base,” Marco Alverà, Snam’s CEO, said.
Snam is Europe’s leading gas utility. It has been building and managing sustainable and technologically advanced infrastructure guaranteeing energy security for over 75 years. Snam operates in Italy and, through subsidiaries, Austria (TAG and GCA), France (Teréga) and the United Kingdom (Interconnector UK). It is one of the main shareholders of TAP (Trans Adriatic Pipeline) and is the company most involved in projects for the creation of the Energy Union.
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