Eni sells out. A few days after the start of the offer, the company announced that the total nominal amount of the public offer for the subscription and admission to listing of the bonds of the loan called «Eni bond sustainability-linked 2023/2028» has been entirely placed at the indiscriminate public. The offer, which envisages a rate of at least 4.3%, was launched on January 16th.
The Lead Managers, Intesa Sanpaolo SpA and UniCredit Bank AG, in agreement with Eni, have availed themselves of the option to order the early closure of the offer on 20 January 2023 at 5.00 pm both for subscriptions at the headquarters and for subscriptions made door-to-door through financial advisors authorized to make door-to-door offers and for subscriptions using remote communication techniques, following the full placement with the general public of the maximum total nominal amount of the offer, equal to 2 billion euro.
The last day for collecting subscriptions for the offer, both for on-site subscriptions and for off-site subscriptions and for subscriptions using remote communication techniques, is 20 January 2023 until 5 pm.
What to know
The Eni bond has the characteristic of being aimed at the retail public and therefore, unlike almost all bonds issued by large companies, of being available also for small portfolios (minimum denomination of 2 thousand euros). For small savers, this is a long-awaited return for this type of instrument: Eni’s last issue dates back to more than 11 years ago. The bond has the characteristic of being linked to the sustainability objectives of the Italian energy giant.
The new bonds have a duration of five years for a total offer value of one billion euro. However, this amount could be increased up to two billion euros in the event of excess demand.
The bonds are issued and offered for subscription at a price equal to 100% of their nominal value, i.e. 1,000 euros each. The principal will be repaid in full upon maturity of the loan (February 10, 2028) exclusively through the authorized intermediaries adhering to the centralized management system at Monte securities.
Rate at least 4.30%
The bonds will pay the subscribers, annually and in arrears, fixed rate interest on the basis of the gross annual nominal interest rate which will be determined and communicated within 5 working days from the end of the offer period. This rate cannot be lower than the minimum rate, set at 4.30%.
In the event of failure to achieve even just one of the two targets, the interest rate relating to the coupon payable on the expiry date (February 10, 2028) will be increased by 0.50%, according to the methods described in the Information Prospectus (Terms of Installed Capacity from Renewables; Condition of the Net Carbon Footprint Upstream). The operation was approved by Eni’s Board of Directors on 27 October.
How to join
The operation can be joined online (or via remote communication) by 20 January. You can also take part in the subscription through off-site offers (by 27 January) and in branches by 3 February. All unless the offer is closed early.
What costs are expected
There are no entry or exit costs, let alone management. However, the bank that manages the transaction could apply commissions for the sale transaction.