Italy’s ERG launches EUR-500m green bond sale

Italian independent power producer ERG SpA (BIT:ERG) has initiated a EUR-500-million offering of green bonds, its fourth one, aiming to raise funds for new renewable and energy storage projects across several markets.

The six-year securities have a gross annual coupon at a fixed rate of 4.125% and are non-convertible and non-subordinated. Their sale was met with high investor interest, attracting orders for more than five times the offered amount, ERG said.

The deal, due to be settled on July 3, was addressed exclusively to institutional investors of the Euromarket. The securities were placed at an issue price equal to 99.521% of the nominal value, with the funds raised set to go for ERG’s wind, solar and storage projects in Europe, the UK and the US.

“The proceeds raised with this issue will support the implementation of the 2024-2026 Industrial Plan based on a selective growth strategy in the "Value over Volume" renewables sector, while maintaining our robust, efficient financial structure, consistent with our sustainability objectives,” said Michele Pedemonte, CFO of ERG.

The bonds will be listed on the regulated market of the Luxembourg Stock Exchange.

BNP Paribas, CaixaBank SA, Credit Agricole Corporate and Investment Bank, IMI-Intesa Sanpaolo, Mediobanca, Santander, Societe Generale, and UniCredit acted as joint bookrunners of the deal.

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