BAKU, Azerbaijan, January 8. Italian gas infrastructure group Snam said it had successfully placed exchangeable green bonds due 2031 and launched a near-total repurchase of its outstanding transition bonds due 2028, Trend reports.
Snam issued €500 million of green bonds exchangeable into existing ordinary shares of Italgas, while simultaneously inviting holders of its €500 million 3.25% EU Taxonomy-aligned transition bonds due 2028 to sell them back to the company.
Chief Financial Officer Luca Passa said the transaction allows Snam to retain full upside in its Italgas stake while managing early conversion risk on more favourable terms, following a positive market reception of Italgas’ updated business plan.
The new bonds carry a fixed annual coupon of 1.75%, payable semi-annually, and have a five-year maturity. They will be redeemed at par at maturity unless previously exchanged, redeemed or cancelled. Snam retains the option to settle exchanges in shares, cash or a combination of both.
The initial exchange price represents a 25% premium over the reference price of Italgas shares, calculated as the arithmetic average of the daily volume-weighted average price during the averaging period.
Proceeds from the bond sale will be used to finance eligible green projects in line with Snam’s Sustainable Finance Framework.
The bonds were offered exclusively to qualified investors outside the United States, Australia, Canada, South Africa and Japan through an accelerated bookbuilding process. Settlement is expected on Jan. 14, 2026. Snam has agreed to a 90-day lock-up on its Italgas shares following issuance, subject to customary exceptions.
Alongside the issuance, Snam collected indications of interest to repurchase 4,943 of its 2028 transition bonds, representing 98.9% of the outstanding amount, via a reverse bookbuilding process.
The purchase price was set at €176,750 per €100,000 in principal amount, before adjustment for movements in the Italgas share price during the averaging period. Accrued interest up to the settlement date will also be paid.