In Piazza Affari, good performance for Eni which is currently up 0.82% to 14.35 euros per share. Eni has announced that, starting from 16 January 2023, the offer of the first bonds destined for the public in Italy linked to its sustainability objectives will start.
In detail, these bonds will have a duration of 5 years and for a total value of 1 billion euro. However, this amount could be increased up to 2 billion euros in case of excess demand.
The bonds in question will be entered into the centralized management system at Euronext Securities Milan in dematerialized form and have been admitted to listing on the MOT by Borsa Italiana.
The transaction was approved by Eni’s Board of Directors on 27 October 2022 and the Bonds pursue the objective of financing any future needs, maintaining a balanced financial structure and further diversifying financial sources.
The bonds will be issued and offered for subscription at a price equal to 100% of their nominal value, ie at a price of 1,000 euros for each bond. The duration of the Bonds is 5 years starting from 10 February 2023 and the principal will be repaid in full upon maturity of the loan (10 February 2028) exclusively through the authorized intermediaries adhering to the centralized management system at Monte Titoli. The Bonds will pay the subscribers, annually and in arrears, fixed-rate interest based on the gross annual nominal interest rate which will be determined and communicated within 5 working days of the end of the Offer period. This rate cannot be lower than the minimum rate, fixed at 4.30%.
As reported in the corporate note, the last coupon payable on February 10, 2028 will be linked to the achievement of the following Eni sustainability targets: reduction of net greenhouse gas emissions (Scope 1 and Scope 2) associated with Upstream business operations. Specifically, the objective is to reduce the Net Carbon Footprint Upstream indicator (Scope 1 and 2) to a value equal to or less than 5.2 MtCO2eq as at 31 December 2025 (-65% compared to the 2018 baseline); and increase in the installed capacity for the production of electricity from renewable sources, up to a value equal to or greater than 5 GW as at 31 December 2025.
Given Eni’s achievement of the above targets, the gross annual nominal interest rate will remain unchanged until the Bonds mature. 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.