Snam Breaks Ground with Sustainability-Linked Bond Tied to Full Emissions Scope

Italian energy infrastructure leader Snam has successfully raised $2 billion through a sustainability-linked bond (SLB) offering, the first-ever of its kind tied to full Scope 1, 2, and 3 net-zero emissions targets across its entire value chain.

Despite a general slowdown in the SLB market due to concerns around the credibility of linked targets, Snam’s offering received overwhelming interest. The bond sale was five times oversubscribed, with orders reaching approximately $10 billion, signaling robust investor confidence in the company’s sustainability ambitions and financial health.

The issuance follows the release of Snam’s Sustainable Finance Framework in April. Under this plan, the cost of the bond is tied directly to measurable emissions reduction goals. These include cutting Scope 1 and 2 emissions by 25% by 2027, 50% by 2030, and 90% by 2050, along with Scope 3 emissions reductions of 35% by 2032 and 90% by 2050. The company also noted that up to 10% of residual emissions may be addressed through carbon offsets.

Snam structured the bond into three tranches:

• $750 million maturing in 2030
• $750 million maturing in 2035
• $500 million maturing in 2055

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The offering also marked Snam’s first entry into the U.S. capital markets, a move that significantly expands its international investor base. With this transaction, 86% of Snam’s total committed funding is now aligned with sustainable finance.

The CEO of Snam, Agostino Scornajenchi, shared his thoughts on the milestone:

“As Snam consolidates its position as a national and pan-European infrastructural player, strengthening our presence in global capital markets becomes essential to support our long-term growth ambitions. The strong interest shown by US fixed-income investors, together with the broad US investor base in our shareholding, reaffirms the high confidence in Snam’s sustainable strategy, financial soundness and our long-term industrial vision.”

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This offering reaffirms Snam’s commitment to achieving net-zero emissions across its entire value chain by 2050 and sets a new precedent in the SLB market by directly tying financing to comprehensive climate goals.

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Source: EarthOps