A2A Places EUR500 Million "Green Bond"
A2A successfully launched a new € 500 million Green Bond with an 11-year maturity.
The new Green Bond from A2A received strong investor interest, resulting in an oversubscription of four times the amount issued. It was issued under A2A's Euro Medium Term Notes Programme and is targeted towards institutional investors. The bond was issued based on the company's Sustainable Finance Framework.
The notes have been issued at a reoffer price and yield of 98.824% and 4.513%, respectively. The coupon has been set at 4.375%, while the final spread over the reference mid swap rate is equal to 167bps.
“Through this issuance, A2A will finance projects related to energy transition and circular economy included in our Strategic Plan that are eligible to the European Taxonomy" - commented Luca Moroni, CFO of A2A - “The transaction further demonstrates A2A's commitment to sustainable finance and guides us to the achievement of a sustainable debt target of 90 per cent by 2030."
The money raised from the sale of the notes will be used to fund and refinance projects related to the circular economy and energy transition. These projects, known as Eligible Green Projects, will focus on areas such as renewable energy, energy efficiency, and pollution control and are aligned with the European Union's definition of sustainable economic activities as listed in the EU Taxonomy.
Furthermore, as part of its allocation report prepared under the Sustainable Finance Framework, A2A agrees to disclose the actual amount of investments aligned with the EU Taxonomy that have been financed through this Green Bond.
The notes are governed by English law and will be traded on the Luxembourg Stock Exchange starting on February 3, 2023, after all the necessary paperwork has been signed.