Strong response with orders from investors for € 3.5bn, which implies an oversubscription ratio of 7x
Milan, 9 March 2022 - A2A (Moody’s Baa2/stable - Standard & Poors BBB/stable) successfully launched a new Sustainability-Linked Bond with a size of €500mln and maturity 6 years.
The new transaction received a strong investor response: indeed, the total order book amounted to €3.5bn, implying an oversubscription ratio of 7x. The new 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 99.308% and a reoffer yield equal to 1.622%. Coupon has been set at 1.500% whilst the final spread over the reference mid swap rate is equal to 100bps.
The bond is linked to the achievement of a specific sustainability performance target related to the renewable energy capacity installation. This target, which is also included in the recently updated A2A 10-year strategic plan, commits A2A to reaching an installed capacity of 3.0 GWh (or higher) by 2024 and contributes to the achievement of UN SDGs 7 and 13.
“This new Sustainability-Linked Bond reinforces the company's commitment to achieve concrete results in the energy transition, as stated in the updated A2A Strategic Plan” - Andrea Crenna, CFO of A2A, said – “The transaction will increase the share of Group’s ESG-labelled debt contributing to reach the new target of over 80% in 2030”.
A2A's Sustainable Finance Framework, updated in February 2022, represents the set of guidelines to reinforce the link between the Group's financial and sustainable strategy. Vigeo Eiris, one of the leading international ESG rating agencies, issued a Second Party Opinion confirming the robustness of the Sustainable Finance Framework and attesting its alignment with ICMA and LMA principles. The agency also highlighted A2A's commitment to the development of sustainable finance and its "Advance" position as an issuer. Should A2A fail to reach the target, a 25bps coupon step-up will apply. In the event that A2A reaches the target, the coupon will remain unchanged until the maturity of the bond.
The notes are subject to the English Law and will be listed on the Luxembourg Stock Exchange from the 16th of March 2022 once all the relevant documentation will be signed.
Citigroup and Mediobanca acted as Global Coordinators whilst BBVA, BNP Paribas, Citigroup, Crédit Agricole CIB, 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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