Strong response with orders from investors in the region of €1.6bn, which implies an oversubscription ratio greater than 3x
Milan, 25 th October 2021 - A2A (Moody’s Baa2/stable - Standard & Poors BBB/stable) successfully launched a new Green Bond with a size of €500mln and maturity 12 years.
The new transaction received a strong investor response: indeed, the total order book was in the region of € 1.6bn, implying an oversubscription ratio greater than 3x. The new Green Bond, which is addressed to institutional investors only and has been issued under the Euro Medium Term Notes Programme, is based on A2A’s Sustainable Finance Framework.
Notes have an issue price of 99.204% and a reoffer yield equal to 1.071%. Coupon has been set at 1.000% whilst the final spread over the reference mid swap rate is equal to 70bps.
The net proceeds from the issuance will be used to finance and/or refinance strategic projects in the fields of circular economy and energy transition: the so-called Eligible Green Projects mainly related to renewable energy and networks, as defined in A2A’s Sustainable Finance Framework. A2A pre-emptively assessed the alignment of those green projects to the EU Taxonomy (with particular reference to the substantial contribution to the environmental objective of 'Climate Change Mitigation').
In addition, A2A commits to disclose, as part of its allocation report, the actual amount of investments aligned to the EU Taxonomy that have been financed through the Green Bond.
“This new Green Bond, which follows the Sustainability-Linked Bond of July, reinforces the link between the Group's financial and sustainable strategy” - Andrea Crenna, CFO of A2A, said - With this Green Bond we are committed to financing green projects aligned to the EU Taxonomy ensuring full transparency in the allocation reports”.
The notes are subject to the English Law and will be listed on the Luxembourg Stock Exchange from the 2 nd of November 2021 once all the relevant documentation will be signed. BNP Paribas and Goldman Sachs International acted as Global Coordinators whilst BNP Paribas, Citi, Goldman Sachs International, IMI-Intesa Sanpaolo, JP Morgan, Mediobanca, Santander, Société Générale and Unicredit acted as Joint Bookrunners.
A2A was supported by the legal counsel Orrick whilst the Joint Bookrunners were assisted by Allen & Overy.
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