Terna’s successful green bond emission for 500 million euros

On 17 July, Terna launched a new green bond for a nominal amount of 500 million euros: a very successful issuance, with a subscription of approximately 2 billion euros. The third bond emission launched by the Company, the leading independent grid operator for electricity transmission in Europe, is addressed to institutional investors and is made under the Medium Term Notes (EMTN), a programme which has been rated “(P)Baa2” by Moody’s, “BBB+” by Standard and Poor’s, and “A-” by Scope. The bond has been issued with a maturity date falling on 24 July 2032, an issue price equal to 99.623% and a spread of 90 basis points over the midswap: the successful green bond will have an actual rate of 0.78%, “the lowest ever amongst Italian corporates, both for green bonds and for issues over 10 years“. The bond was placed by Banca Imi, Bnpp, Citi, Goldman Sachs International, Mediobanca, Santander, and UniCredit. The proceeds from the issue will finance Terna’s “eligible green projects”, which are aimed at generating benefits to the environment. This confirms the Group’s policy which for years has focused on sustainability and the achievement of energy transition objectives. The “eligible green projects” are defined within the Group’s Green Bond Framework, which is compliant with the “Green Bond Principles 2018” published by the ICMA (International Capital Market Association).