Terna Successfully Issues EUR750 Million Green Bond with Robust Demand

Terna Spa has successfully placed a EUR750 million green bond with a fixed rate and maturing in July 2031. Demand reached nearly five times the amount offered, with the bond priced at 99.589% of its nominal value and a spread of 70 basis points above the midswap rate. The bond will be listed on Borsa Italiana's MOT and is part of Terna's strategy to repatriate bond issuances to the domestic market.

July 02, 2025 - Terna Spa, the Italian high-voltage electricity transmission grid operator, has successfully placed a EUR750 million green bond with a fixed rate and a maturity date of July 2031. The bond, which was offered at a price of 99.589% of its nominal value, saw demand that reached nearly five times the amount offered. The bond was priced at a spread of 70 basis points above the midswap rate and will be listed on Borsa Italiana's MOT, aligning with Terna's strategy to repatriate bond issuances to the domestic market.

The green bond, designated as a European Green Bond (EuGB), is part of Terna's broader strategy to finance and refinance sustainable infrastructure projects, contributing to Italy's decarbonization goals. The proceeds from the bond will be allocated to taxonomy-aligned capital expenditures, supporting Terna's 2025-2034 Development Plan, which focuses on enhancing the quality, efficiency, and safety of the national transmission grid.

Terna has established a dedicated Green Committee to review and validate the selection of eligible green projects. The committee will meet annually and as needed to ensure full alignment with the technical screening criteria defined in the EU Taxonomy Climate Delegated Act. The bond will be reviewed by S&P Global Ratings Europe, with the proceeds allocated to activities that are environmentally sustainable under EU Taxonomy requirements.

This issuance underscores Terna's commitment to sustainable development and its role in facilitating the integration of renewable energy sources. The bond's strong demand and favorable pricing reflect investor confidence in Terna's environmental strategy and financial stability.

References:

[1] https://www.marketscreener.com/quote/stock/TERNA-S-P-A-135034/news/Terna-S-p-A-European-Green-Bond-Factsheet-EuGB-Factsheet-Terna-8ddc30fc4902636-50510932/