Italy’s Terna places EUR-650m green bond in oversubscribed deal

Italian power grid operator Terna SpA (BIT:TRN) has kicked off an offering of fixed-rate green bonds in a bid to raise EUR 650 million (USD 728.7m) for green investments, including renewables

The single-tranche issue was met with high investor demand, attracting orders with a total amount that were almost four times higher than the offered amount, the Rome-based transmission system operator (TSO) said earlier this week. The offering targeted institutional investors.

The green bond matures in 10 years, on July 24, 2023, and bears an annual interest of 3.875%. It was issued at a price of 99.107%, with a spread of 90 basis points over the midswap. The issue will be settled on July 24.

The offering, part of Terna’s EUR-9-billion medium term notes programme, will provide the company with fresh capital to finance the development of green projects in line with its green bond framework. These include investments for the interconnection of renewable power plants, grid infrastructures that enhance energy efficiency, as well as initiatives aiming to improve the security and resilience of the power network.

The transaction was run by BofA Securities, BNP Paribas, Deutsche Bank, IMI-Intesa Sanpaolo, Mediobanca, Santander, Societe Generale, UniCredit.

Terna intends to list the bonds on the Luxembourg Stock Exchange.

(EUR 1.0 = USD 1.121)

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