Terna: great success for the launch of a 6-year bond issue

Guided by Luigi Ferraris, Terna is one of the main European electricity transmission grid operators. The company launched successfully a bond issue in Euro addressed to institutional investors.

The issue was made as part of its € 8,000,000,000 Euro Medium Term Notes (EMTN) Programme for an aggregate amount of € 500 million and it received a great response with a demand outstripping supply by approximately four times the offered amount. It will expire on July 2025 and will pay a coupon of 0.125%, the lowest for an Italian corporate bond with duration above 5 years, and will be issued at a price of 99.245, with a spread of 45 basis points over the midswap and an indicative spread of approximately 70 bps lower than the Italian BTP having same maturity. The effective cost for the company led by Luigi Ferraris of such issuance is equal to 0.25% compared to the average cost of the consolidated net debt equal to 1.6% over the Strategic Plan period.
This operation is part of Terna’s financial strategy to cover the need of its Industrial Plan and aims to the maximum efficiency and to manage the debt in a proactive way, seizing all the opportunities offered by the capital market. The bond issue was placed by a syndicate of banks formed by of Banca Akros, Banca IMI, BNP Paribas, Morgan Stanley, Société Générale, SMBC Nikko and UniCredit acting as joint lead managers and joint bookrunners. In order to be listed on the Luxembourg Stock Exchange, an application will be made for the bond.