Acea successfully concluded the reopening of the bond issue in Green format carried out on 17 January 2023 (rate 3.875%, maturing on 24 January 2031) for an amount of 200 million euro (“TAP Issue”).
The issuance of the TAP Issue received final bids equal to more than 1.5 times the amount offered. The bonds, which have a minimum unit denomination of 100,000 euro and a rate of 3.875%, were placed at an issue price of 100.368%, which implies a yield of 3.820%, corresponding to a yield of 105 basis points above the midswap rate, allowing for a further improvement on the already very attractive terms of the original issue.
The timely execution of the Tap Issue benefited from the previous day’s downward movement in interest rates and the excellent secondary market levels of the original green bond.
The settlement date has been set for 10 February 2023. From that date, the securities will be listed on the regulated market of the Luxembourg Stock Exchange. The proceeds are intended to finance specific projects that pursue sustainability objectives.
In particular, those relating to the resilience of the electricity distribution network, energy efficiency, electric mobility, the development of the circular economy, the increase in the production of energy from renewable sources and the protection of water resources.
The issue is intended exclusively for institutional investors in the Euromarket. The placement operation was managed by Bank of America, Goldman Sachs, Intesa SanPaolo IMI, JP Morgan, UniCredit. The agencies Fitch Ratings and Moody’s Investors Service are expected to assign a rating of BBB+ and Baa2 respectively to the TAP Issue.