REGGIO EMILIA (ITALPRESS) – Iren Spa (rated BBB stable outlook by Standard & Poor’s and rated BBB stable outlook by Fitch) today placed with great success its first hybrid subordinated perpetual bond issue with a nominal value of 500 million euros.The issue, carried out in execution of the Dec. 18, 2024 resolution of the company’s Board of Directors, received applications for subscription almost 8 times the amount offered, totaling orders for an amount of 4 billion euros. The issue’s settlement date is scheduled for January 23, 2025.The transaction, aimed at further strengthening the capital structure and supporting the Group’s financial flexibility, is consistent with Iren’s growth strategy aimed at integrating EGEA, seizing potential new inorganic opportunities in addition to the realization of the investments envisaged in the 2024-2030 Business Plan, and confirms Iren’s commitment to maintaining its current investment grade rating.The bond, issued in a single €500 million tranche, is nonconvertible, subordinated, perpetual and payable only in the event of dissolution or liquidation of the Company, as set out in the relevant terms and conditions.The fixed annual coupon of 4.5 percent will be paid until the first reset date of April 23, 2030. From that date, unless fully redeemed, the security will accrue interest equal to the benchmark five-year Euro Mid Swap rate increased by an initial margin of 221.2 basis points. The margin will increase by 25 basis points from 2035 and an additional 75 basis points from 2050 for a cumulative amount of 100 basis points. The fixed coupon is payable annually in arrears in April, starting in April 2025. The issue price is set at 99.448 percent and the effective yield at the first reset date is 4.625 percent per annum.The bonds, intended for qualified investors, will be listed on the regulated market of the Irish Stock Exchange (Euronext Dublin). They are also expected to be assigned a rating of BB+/BB+ (S&P’s/Fitch) and an equity content of 50 percent by the agencies.The placement was overseen by Barclays, BofA Securities, Citi, Goldman Sachs International, Intesa Sanpaolo (IMI CIB Division), Mediobanca, Sociètè Gènèrale Corporate & Investment Banking, and UniCredit as joint lead manager. “We are pleased to announce that 2025 opens with the inaugural issuance of a €500 million hybrid bond. The market reception beyond expectations has led us to achieve an extraordinary result, with demand exceeding supply by almost 8 times, totaling orders for an amount of more than 4 billion euros, testifying to Iren’s solidity and credibility in the market,” said Luca Dal Fabbro, Executive Chairman of Iren Group (pictured). This initiative is perfectly in line with our growth strategy, which includes the integration of EGEA and the implementation of the investments set out in our 2024-2030 Business Plan, allowing us to maintain adequate financial flexibility to seize any further development opportunities.””We are satisfied with the result of today’s transaction, which allows us to further strengthen the capital structure of our Group while also diversifying our investor base,” said Giovanni Gazza, CFO of the Iren Group. “The issuance of the hybrid bond ensures high financial flexibility to support the achievement of the economic-financial targets set in the Industrial Plan, and reflects Iren’s commitment to pursue growth in compliance with robust credit metrics in line with current investment grade ratings.
– Iren press office photo –
(ITALPRESS).
