Ferrovie, a 1 billion green bond to buy new regional trains and AV- time.news

by time news

The market’s passion for green bonds continues, a segment that sees Italian companies in the front row. Ferrovie dello Stato FS issued its third green bond on Friday 19 for a nominal value of 1 billion euro and a duration of 7 years. FS had already entered this market in 2017 and 2019 with two issues. The transaction represents the largest green bond issued by FS to date and the lowest ever coupon for a public issue of FS, set at 0.375%, with a final spread of 60 basis points above the reference mid-swap rate.

The projects

All the projects financed by the green bond – explained in a note from the group led by Gianfranco Battisti – ensure improvements in energy efficiency, a reduction in CO2 emissions and a modal shift towards the train. Almost 80% of the proceeds will finance the purchase of the Pop and Rock regional trains and the remainder will be dedicated to the ETR 1000 high-speed trains, partly used for the first time also in Spain. For this operation – continues the note – FS Italiane has confirmed the certification by the Climate Bonds Initiative, a non-profit organization that promotes sustainable finance worldwide as a tool to combat climate change.

The rush of the market

The total orders were equal to approximately 1.75 billion euros, coming from about 90 investors, with strong demand from Italy and about 35% from abroad, lead orders from Italy and France. About 75% of the orders allocated came from ESG investors, committed to sustainability issues. Deutsche Bank, Goldman Sachs International, IMI-Intesa Sanpaolo, ING, Morgan Stanley, NatWest Markets, Santander and UniCredit acted as Joint Lead Managers and Joint Bookrunners in the placement of the stock

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