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Eni Doubles Sustainability-Linked Bond Offering to €2 Billion

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Eni Doubles Sustainability-Linked Bond Offering to €2 Billion

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  • Received orders from over 300,000 investors for over Euro 10 billion, compared to Euro 1 billion initially offered
  • The strong demand enabled Eni to close the offer in advance in just five days
  • Gross annual nominal interest rate set at 4.30%

Eni S.p.A. announces that the gross annual nominal interest rate of its first sustainability-linked bond dedicated to public in Italy has been set at 4.30%.

The offer of the Bond, which was initially expected to end on 3 February, was closed in advance on 20 January thanks to the high demand received from Italian investors.

The overall demand was over Euro 10 billion with requests received from over 300,000 investors. This has been the Italian record for a single tranche corporate bond issue aimed at retail.

The extraordinary success of the offer demonstrates the strong appreciation among Italian investors for the soundness of Eni and its commitment to the energy transition.

Eni CEO Claudio Descalzi commented, “The success of this initiative has been extraordinary and surprising. It has been for us above all a very strong response in terms of trust from the Italian public, and this is the aspect that gives us the greatest satisfaction and strengthens us. So many Italians have believed in what we are doing, both in terms of progressively moving toward decarbonized industrial processes and products, and in terms of ensuring energy security.”

See related article: Eni Announces the Incorporation of New Sustainable Mobility Company

Image source: Eni

The issuance of the bond involved the Country System enabling Italian investors to participate in Eni’s economic-financial results while involving all the main Italian banking groups.  It further consolidated Eni’s position in the Italian market and helped to confirm it among the companies promoting innovation in sustainable finance instruments.

This issuance, the first sustainability-linked bond in the sector addressed to retail investors, further consolidates the link between Eni’s financial and sustainability strategies.

Eni introduced the world’s first Sustainability-Linked Financing Framework in its industry in 2021, which has been the reference for linking multiple financial instruments to relevant goals of Eni’s decarbonization strategy.

The 5-year maturity Bond will be issued on 10 February 2023 for an amount of Euro 2 billion at a price equal to 100% of the nominal value. The Bond will pay a gross annual coupon of 4.30% which will remain unchanged until maturity subject to achievement of the sustainability targets relating to the renewable energy installed capacity and the Net Carbon Footprint Upstream (Scope 1 and 2), as indicated in the Prospectus. If one of the two targets is not achieved, the interest rate related to the coupon payable at maturity (February 10, 2028) will be increased by 0.50%, as described in the Prospectus.

Starting from the issue date, it will be possible to trade the notes on the Mercato Telematico delle Obbligazioni (MOT), organized and managed by Borsa Italiana.

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