Italian energy infrastructure company Snam has raised $2 billion in its inaugural U.S. dollar-denominated multi-tranche sustainability-linked bond, marking a series of firsts in the global sustainable finance landscape.

The offering is the first-ever SLB globally to tie its terms to a net-zero greenhouse gas emissions target covering Scopes 1, 2 and 3.

Demand for the notes reached approximately $10 billion, five times the issue size, the company stated in a press release.

Diversification Milestone

The placement also marks Snam’s debut in the U.S. capital markets via a 144A/Reg S format. It is the largest USD-denominated SLB year-to-date among European investment-grade regulated issuers.

The move is part of Snam’s broader strategy to diversify funding sources, with foreign currency-denominated securities now accounting for over 10 percent of its medium- and long-term debt.

“This inaugural bond issuance in US dollars represents a significant milestone in our strategy to diversify funding sources, accelerate our sustainable finance path and broaden our international investor base,” said CEO Agostino Scornajenchi.

Strong Market Reception

The deal follows a marketing campaign involving over 50 international investors. Snam said strong demand and constructive feedback helped secure favorable pricing and terms.

The bond is issued in three tranches:

  • $750 million 5-year notes due May 2030 with a 5.000 percent coupon
  • $750 million 10-year notes due May 2035 with a 5.750 percent coupon
  • $500 million 30-year notes due May 2055 with a 6.500 percent coupon

The euro-equivalent average interest cost is around 4 percent, the company said.

Net Zero Target by 2050

The offering is aligned with Snam’s Sustainable Finance Framework, published in April, which ties the bond’s terms to concrete emission reduction goals. These include:

  • A 25 percent cut in Scope 1 and 2 emissions by 2027, rising to 90 percent by 2050
  • A 35 percent reduction in Scope 3 emissions by 2032, also targeting 90 percent by 2050

Snam aims to reach net zero across all scopes by 2050, with up to 10 percent of emissions covered by offsets.

The transaction boosts Snam’s sustainable finance share to 86 percent of total committed funding, edging closer to its 90 percent target for 2029.

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.