Home Consumer debt REFILE-UPDATE 4-Telecom Italia debuts in the green bond market with a sale of 1 billion euros

REFILE-UPDATE 4-Telecom Italia debuts in the green bond market with a sale of 1 billion euros


(Refile the story to clarify at par 5 that it was TIM that had been absent from the debt market)

* Former telephone monopoly attracts more than 2.8 billion euros in lead

* Final orientation on price points for a yield of 1.75%

* TIM aims to modernize its networks to reduce its carbon footprint

MILAN, Jan.11 (Reuters) – Telecom Italia (TIM) has raised € 1 billion ($ 1.2 billion) with its first green bond, one of the top executives said on Monday, as the largest group of Italian telephony is striving to modernize its networks.

The sale of the eight-year issue, which marks TIM’s return to the bond market after an absence of nearly two years, has attracted more than € 2.8 billion in final orders, the leader added. .

The former telephone monopoly is working to modernize its fixed and mobile networks to improve energy efficiency and aims for carbon neutrality by 2030. Green bonds allow borrowers to raise funds for projects that benefit the environment.

The final price stance was set at a return of 1.75%, according to the official, down from initial indications of a return of around 2.25%, which equates to a deviation of 255. at 260 basis points relative to the average market exchange rate.

“The issue reached a wide range of investors, with orders coming from over 350 accounts. We are very pleased given that prior to today’s deal TIM had been out of the market since April 2019, ”said Carolina Marazzini, Co-Head of Debt Origination at UniCredit.

Banca Akros, BNP Paribas, Crédit Agricole CIB, Deutsche Bank, UniCredit, Banco Santander, BBVA, Credit Suisse and UBI Banca were the main managers in Monday’s bond sale.

Last month, Moody’s further downgraded TIM to junk territory, citing “a very competitive operating environment in Italy that will further limit the company’s ability to strengthen cash flow generation and reduce leverage.”

But TIM has benefited from record borrowing costs thanks to massive stimulus measures deployed by the European Central Bank to help the eurozone economy weather the impact of the coronavirus pandemic.

When it last entered the market in April 2019, TIM raised € 1 billion via a senior bond due April 2025 at a yield of 2.875%. ($ 1 = 0.8207 euros) (Reporting by Elvira Pollina, Sara Rossi and Stefano Bernabei; edited by Mark Potter, Kirsten Donovan, Bernadette Baum and Jonathan Oatis)