Chicago, Feb. 12 – SNAM SpA priced a €1.5 billion dual-tranche notes offering (Baa2/BBB+/BBB+) on Monday, according to a market source.
The ESG deal included €500 million of four-year green notes. The tranche priced with a 3.375% coupon at 99.596 to yield 3.485%, or at mid-swaps plus 70 basis points. Initial talk was mid-swaps plus 110 bps to 115 bps. As the order book climbed to over €3.1 billion, guidance brought the notes into the mid-swaps plus 80 bps area.
The second part is a €1 billion 10-year sustainability-linked bond. The note priced with a 3.875% coupon at 99.504 to yield 3.936%, or at mid-swaps plus 120 bps. Initial talk was 150 bps to 155 bps. Guidance on a €2.5 billion order book brought the notes into the mid-swaps plus 125 bps area.
On the sustainability-linked part of the deal, the coupon will increase 25 bps per year if the company fails to reduce scope 1 and scope 2 GHG emissions by Dec. 31, 2030 against a baseline established in 2022.
Also on the sustainability-linked tranche, a redemption premium event will occur if SNAM fails to achieve a reduction in scope 3 GHG emissions by 35% by Dec. 31, 2032 compared with a 2022 baseline. The redemption premium amount will be 25 bps.
Call protection includes a Bunds plus 20 bps make-whole premium on the shorter-duration tranche with a one-month par call. The 10-year notes have a Bunds plus 25 bps make-whole premium until the three-month par call option.
On the green notes, Barclays is handling billing and delivery. For the sustainable notes, the billing and delivery bank is Barclays.
The full list of joint bookrunners is Barclays, BNP Paribas, BofA Securities, Goldman Sachs International, ICBC, IMI-Intesa Sanpaolo, ING, JP Morgan, Mediobanca, Mizuho, SMBC, Societe Generale and UniCredit.
Proceeds from the green bonds will be used for eligible green projects. Proceeds from the sustainability-linked notes will be used for general corporate purposes.
SNAM is a natural gas infrastructure company based in San Donato Milanese, Italy.
| Issuer: | SNAM SpA
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| Amount: | €1.5 billion
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| Trade date: | Feb. 12
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| Settlement date: | Feb. 19
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | Regulation S
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|
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| Green notes
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| Amount: | €500 million
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| Issue: | Green notes
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| Maturity: | Feb. 19, 2028
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| Bookrunners: | Barclays (billing and delivery), BNP Paribas, BofA Securities, Goldman Sachs International, ICBC, IMI-Intesa Sanpaolo, ING, JP Morgan, Mediobanca, Mizuho, SMBC, Societe Generale and UniCredit
|
| Coupon: | 3.375%
|
| Price: | 99.596
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| Yield: | 3.485%
|
| Spread: | Mid-swaps plus 70 bps
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| Call features: | Make-whole call at Bunds plus 20 bps; one-month par call
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| Price talk: | Mid-swaps plus 110 bps to 115 bps; guided to mid-swaps plus 80 bps area
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| ISIN: | XS2767499275
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| Sustainability notes
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| Amount: | €1 billion
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| Issue: | Sustainability-linked notes
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| Maturity: | Feb. 19, 2034
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| Bookrunners: | BNP Paribas (billing and delivery), Barclays, BofA Securities, Goldman Sachs International, ICBC, IMI-Intesa Sanpaolo, ING, JP Morgan, Mediobanca, Mizuho, SMBC, Societe Generale and UniCredit
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| Coupon: | 3.875%, subject to potential step-up
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| Price: | 99.504
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| Yield: | 3.936%
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| Spread: | Mid-swaps plus 120 bps
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| Call features: | Make-whole call at Bunds plus 25 bps; three-month par call
|
| Price talk: | Mid-swaps plus 150 bps to 155 bps; guided to mid-swaps plus 15 bps area
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| ISIN: | XS2767499945
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