(Alliance News) - Terna Spa announced Wednesday evening that it has successfully launched a green, fixed-rate perpetual subordinated hybrid nonconvertible bond issue,

denominated in euros, intended for institutional investors, with a total nominal amount of EUR850 million.

The issue has won great favor in the market with maximum demand for more than EUR3 billion, about 4 times the supply, and is characterized by high quality and wide geographic diversification of investors.

The bond, structured in a single tranche, is non-convertible subordinated, green, hybrid and perpetual. The bond is non-"callable" for 6 years, and the issue price is set at 99.745%, with a spread of 214.2 basis points over the Midswap.

The issue will pay a fixed annual coupon of 4.750% that will be paid until the first reset date (excluding) scheduled for April 11, 2030 and will have an effective rate of 4.800%.

From that date, if early redemption has not taken place, the hybrid bond will accrue annual interest equal to the Euro Mid Swap rate of

five-year benchmark rate, increased by an initial margin of 214.2 basis points, increased by an additional margin of 25 basis points as of April 11, 2035, and by a subsequent increase of an additional 75 basis points as of April 11, 2050.

"It is also expected to be assigned an agency rating of Ba1/ BBB- (Moody's/S&P's) and an equity content of 50 percent," the company note reads.

Terna closed Wednesday's session in the green by 0.7 percent at EUR7.72 per share

By Maurizio Carta, Alliance News reporter

Comments and questions to redazione@alliancenews.com

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.