MILAN – Snam has successfully completed a $2 billion multi-tranche Sustainability-Linked Bond (SLB), becoming the first global issuer to link such a bond to Net Zero targets across all greenhouse gas (GHG) emissions scopes—Scope 1, 2, and 3. This trailblazing issuance is not only the largest of its kind by a European investment-grade regulated company in 2025, but also marks Snam’s debut in the U.S. dollar bond market.
Executed under Rule 144A/Reg S format, the transaction was met with overwhelming demand, attracting $10 billion in orders—five times the issuance size—demonstrating strong institutional investor appetite for high-integrity ESG instruments.
“This inaugural U.S. dollar bond marks a pivotal step in diversifying our funding base, expanding our international investor reach, and accelerating Snam’s transition toward Net Zero,” said Snam CEO Agostino Scornajenchi.
Key Features of the Bond:
- Structure: Three tranches with maturities of 5, 10, and 30 years
- Weighted Average Interest Rate (euro-equivalent): ~4%
- Use of Proceeds: Support Snam’s sustainability and energy transition objectives as outlined in its April 2025 Sustainable Finance Framework
Sustainability Commitments Tied to the Bond:
Snam has committed to the following emissions reduction targets, verified and integrated into the bond’s performance metrics:
- Scope 1 & 2:
- –25% by 2027
- –50% by 2035
- –90% by 2050
- Scope 3:
- –35% by 2032
- –90% by 2050
- Net Zero (All Scopes):
- By 2050, with allowance for up to 10% carbon offsets
This issuance increases the proportion of sustainable finance in Snam’s funding mix to 86%, advancing toward its goal of 90% by 2029.
Tranche Breakdown:
- 5-Year Tranche:
- $750 million
- 5.000% coupon
- 5.113% yield
- Maturity: May 28, 2030
- 10-Year Tranche:
- $750 million
- 5.750% coupon
- 5.777% yield
- Maturity: May 28, 2035
- 30-Year Tranche:
- $500 million
- 6.500% coupon
- 6.522% yield
- Maturity: May 28, 2055
Lead Managers:
The joint bookrunners for the transaction were Barclays, BNP Paribas, BofA Securities, Citigroup, Goldman Sachs International, HSBC, J.P. Morgan, Morgan Stanley, SMBC, and Société Générale.
“This issuance underlines the strength of our sustainable strategy and long-term industrial vision, while reaffirming the confidence global investors have in Snam,” added Scornajenchi.
With this pioneering SLB, Snam not only reinforces its position as a global leader in energy infrastructure but also sets a new benchmark for transparency and accountability in climate-related finance.
