The IMI Corporate & Investment Banking Division of Intesa Sanpaolo acted as Structuring Advisor and Joint Bookrunner in the inaugural issue of Terna's EU Green perpetual Hybrid Bond, subordinated and non convertible, for a total nominal amount of EUR 850 million, targeted at institutional investors.
The transaction represents the first perpetual hybrid bond issued under the European Green Bond Standard both for Terna and for the Italian domestic market. Issued in a single tranche, the bond is non-callable for six years, pays a fixed annual coupon of 3.875% until the first reset date and was priced at par, with a spread of 123 basis points over the relevant Mid-Swap rate.
The issuance attracted total demand in excess of EUR 7 billion, corresponding to approximately nine times the offer size, and was characterized by high-quality and geographically well-diversified investor participation. The subordination premium versus an equivalent senior issuance was below 60 basis points, representing the lowest level ever recorded for a euro-denominated corporate hybrid bond issuance in Europe.
The proceeds will be used to finance or refinance Terna’s eligible green projects, in line with the Company’s Green Bond Framework, the ICMA Green Bond Principles and the European Union Taxonomy, supporting the implementation of the Group’s 2024–2028 Industrial Plan.
This successful transaction marks a further milestone in the longstanding relationship between Intesa Sanpaolo and Terna, one of Europe’s leading players in the electricity transmission and distribution sector.
