Snam arranging fixed income investor calls to optimize financial structure

Oil&Gas Materials 11 January 2022 10:24 (UTC +04:00)
Snam arranging fixed income investor calls to optimize financial structure

BAKU, Azerbaijan, Jan.11

By Leman Zeynalova – Trend:

Italian Snam S.p.A. has given mandate to Barclays, BNP Paribas and Goldman Sachs as Global Coordinators and ESG Structuring Advisors to arrange a series of fixed income investor calls aimed at a new bond issuance, Trend reports with reference to the company.

Reportedly, these transactions are aimed at optimizing corporate financial structure and increase the weight of sustainable finance expected to reach over 80 percent of the company's total funding in 2025.

An inaugural EUR benchmark dual tranche Sustainability-Linked Bonds offering with 7-year long (June 2029) and 12-year long (June 2034) maturities is expected to follow, subject to market conditions. The transaction will be launched under Snam's 12 billion euros Medium Term Note Program.

The Sustainability-Linked Bonds will envisage the achievement of sustainable targets, as set out in its Sustainable Finance Framework, published on November 29 th 2021.

Concurrently with the above, a tender offer has been launched today to the holders of already issued notes by Snam S.p.A. under its EMTN Programme, namely:

€750,000,000 1.500 per cent, due April 21 st, 2023, of which is outstanding €190.133.000 (XS1126183760)
€900,000,000 1.000 per cent, due September 18 th, 2023, of which is outstanding €521,687,000 (XS1881004730)
€750,000,000 1.375 per cent, due November 19 th, 2023, of which is outstanding €167,396,000 (XS1318709497)
€600,000,000 3.250 per cent, due January 22 nd, 2024, of which is outstanding €384,734,000 (XS1019326641)
€500,000,000 1.250 per cent, due January 25 th, 2025, of which is outstanding €338,648,000 (XS1555402145)
€650,000,000 1.375 per cent, due October 25 th, 2027, of which is outstanding €650,000,000 (XS1700721464)

The maximum overall amount accepted will be determined and announced by Snam in accordance with the terms and conditions of the Tender Offer Memorandum dated January 10 th, 2022, subject to the applicable offers and distributions' limitations.

A priority allocation mechanism can also be applied to the tender offers in respect to the holders of the existing notes subject to the tender offers expressing their intention to subscribe for the new notes.

Through these two transactions, Snam continues its debt structure and cost of capital optimization thereby increasing the recourse to sustainable finance over total funding (today at 60 percent) with the goal to overcome 80 percent by 2025.


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