ERG issues EUR-500m green bond

Italian independent power producer ERG SpA (BIT:ERG) has issued a six-year EUR-500-million (USD 536.2m) green bond as part of its EUR-3-billion medium-term note programme, the company said on Wednesday.

The bond, addressed exclusively to Euromarket institutional investors, offers a 4.125% fixed coupon rate, with a further benefit from a pre-arranged hedge that reduces the all-in cost to around 3%.

Proceeds will be held temporarily until allocated to specific green projects, foreseen to be wind, solar and battery storage projects in Europe, the UK and the US.

The bond will be listed on the regulated market of the Luxembourg Stock Exchange after the settlement date, which is set for July 3, 2024.

BNP Paribas, CaixaBank, Credit Agricole Corporate and Investment Bank, IMI-Intesa Sanpaolo, Mediobanca, Santander, Societe Generale, and UniCredit acted as joint bookrunners for the issuance. Credit Agricole Corporate and Investment Bank acted as green structuring agent.

(EUR 1.0 = USD 1.072)

Choose your newsletter by Renewables Now. Join for free!