Debt ratios - FY 2024
Excel (11.68 Kb)
A2A has provided itself with a sound financial structure, by pursuing maximum efficiency in optimizing the debt redemption profile through a proactive funding management aimed at seizing all opportunities offered by capital markets.
The focus on an adequate debt structure contributes to position the Group as an "Investment grade" issuer, as assessed by Moody's and Standard & Poor's
- Debt structure
- EMTN Programme
- Senior bonds
- Hybrid bonds
- Sustainable finance
- Rating
Debt structure
A2A can count on a wide range of funding sources obtainable at competitive costs through private lending and capital markets.
Courtesy of an effective sources diversification, A2A is able to meet its foreseeable short and long-term funding needs.
As of 31 december 2024
Debt Breakdown
FY 2024
Interest Rate Structure
FY 2024
Debt Maturities Breakdown
ESG Debt
FY 2024
Debt ratios
| Key Ratios | FY 2024 | FY 2023 |
|---|---|---|
| Net Debt/Equity (%) | 97% | 98% |
| Net Debt/EBITDA (x) | 2.50 | 2.40 |
| Interest Coverage Ratio(*)(x) | 10.80 | 7.32 |
| Average Debt Maturity (years) | 5.2 | 5.7 |
| Average Cost of Debt (%) | 2.70% | 2.50% |
| Cash & Cash Equivalent | € 3.4 bn | € 3.6 bn |
| of which: | ||
| Undrawn Credit Facilities | € 1.8 bn | € 1.9 bn |
| Cash | € 1.6 bn | € 1.6 bn |
(*) This ratio is calculated as EBIT/Interest Expenses
Debt profile
as of 31 december 2024
| Type of Debt (mln €) | Accounting balance 31/12/2024 |
Amount due in | |||||
|---|---|---|---|---|---|---|---|
| 31/12/2025 | 31/12/2026 | 31/12/2027 | 31/12/2028 | 31/12/2029 | beyond | ||
| Bonds | 4,857 | 354 | 598 | 298 | 497 | 397 | 2,713 |
| Bank loans and other | 2,415 | 601 | 935 | 128 | 123 | 117 | 511 |
| TOTAL | 7,272 | 955 | 1,533 | 426 | 620 | 514 | 3,224 |
Sources: A2A FY 2024 Results
Interest rate risk
As of 31 december 2024, bank borrowings and other financing obtained by the A2A Group may be broken down as follows:
Financing Structure (mln €)
| Type | 31 december 2024 | 31 december 2023 | ||||
|---|---|---|---|---|---|---|
| No derivatives | With derivatives | % with derivatives | No derivatives | With derivatives | % with derivatives | |
| Fixed rate | 5,468 | 5,714 | 79% | 5,431 | 5,548 | 87% |
| Floating rate | 1,804 | 1,558 | 21% | 920 | 803 | 13% |
| Total | 7,272 | 7,272 | 100% | 6,351 | 6,351 | 100% |
EMTN Programme
- On 19 December 2024, the Board of Directors of A2A approved a framework resolution authorising the issuance, by 30 April 2026, of notes up to an aggregate amount of 1.65€B, under i) its EMTN Programme with a Base Prospectus approved by the Commission de Surveillance du Secteur Financier (CSSF), and ii) the EMTN Programme with a Base Prospectus approved by the Commissione Nazionale per le Società e la Borsa (CONSOB).
- On 10 December 2024 the Commissione Nazionale per le Società e la Borsa (CONSOB), the Italian market authority, authorized the A2A’s Euro 7 billion EMTN Programme which provides for the bonds to be admitted to trading on the MOT managed by Borsa Italiana (Italian Stock Exchange).
- On 13 May 2021, A2A’s Board of Directors approved the update of the EMTN Programme which includes an increase of the total envelope to € 6bn;
- On 10 November 2016, the Board of Directors of A2A approved a framework resolution for the issue of notes to be issued under the existing EMTN Programme in one or more series or tranches, in one or more times, up to an aggregate amount of € 1bn, by December 31, 2019;
- On 6 November 2014, the Board of Directors of A2A approved and authorized the update of the Programme, increasing the total amount of notes which may be issued thereunder to € 4bn. The Board authorized the issue of notes up to an aggregate amount of € 1bn, by December 31, 2016;
- On 19 September 2012, the Management Board of A2A approved the adoption of a Bond Issue Programme (Euro Medium Term Note Programme) for a maximum amount of € 2bn, listed on the Luxembourg Stock Exchange;
- The adoption of the EMTN is part of the A2A Group’s medium-term financial strategy, which is aimed at lengthening the average life of the Company’s outstanding debt and at maintaining an adequate financial flexibility in order to efficiently manage the future debt maturities, to support the Company’s rating;
- The bonds to be issued on the basis of the Programme are placed to institutional investors;
- On 15 June 2023, A2A’s Board of Directors approved the update of the EMTN Programme increasing its size to € 7bn.
- Supplement n. 2 to the Base Prospectus of 24 May 2024 – 15 January 2025PDF (596.09 Kb)
- Supplement n. 1 to the Base Prospectus of 24 May 2024 - 4 October 2024PDF (1.57 Mb)
- Base Prospectus of 24 May 2024PDF (3.42 Mb)
- Base Prospectus of 7 July 2023PDF (2.43 Mb)
- Supplement no. 2 to the Base Prospectus of 27 May 2022 - 24 January 2023PDF (580.60 Kb)
- Supplement no. 1 to the Base Prospectus of 27 May 2022 - 9 September 2022PDF (404.13 Kb)
- Base Prospectus of 27 May 2022PDF (1.89 Mb)
- Supplement no. 3 to the Base Prospectus of 14 June 2021 - 25 February 2022PDF (604.35 Kb)
- Supplement no. 2 to the Base Prospectus of 14 June 2021 - 4 February 2022PDF (445.93 Kb)
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A2A senior bonds
The currently outstanding bonds issued by A2A Group account for ca for € 5,0 bn.
Furthermore, it should be noted that Euro Bonds 2035, 2034, 2033, 2032, 2031, 2030, 2029, 2028, 2027 and 2026 were issued under the EMTN Programme and that the current bond rating – where applicable, is different from the issue rating and is equal to the M/L term rating assigned to the Company by S&P and Moody’s.
The bonds of the A2A Group are listed below.
| Bond | ISIN | Outstanding Amount, €M |
Annual Coupon |
Issue Date | Maturity Date | Issue Price | Re-offer Yield | Rating (S&P/Moody’s) |
|---|---|---|---|---|---|---|---|---|
| Euro European Green Bond 2035 | XS2986639701 | 500 | 3.625% | 30/01/2025 | 30/01/2035 | 99.080% | 3.737% | BBB/Baa2 |
| Euro Green Bond 2034 | XS2583205906 | 500 | 4.375% | 03/02/2023 | 03/02/2034 | 98.824% | 4.513% | BBB/Baa2 |
| Euro Green Bond 2030 | XS2534976886 | 650 | 4.500% | 19/09/2022 | 19/09/2030 | 99.677% | 4.549% | BBB/Baa2 |
| Euro Green Bond 2026 | XS2491189408 | 600 | 2.500% | 08/06/2022 | 08/06/2026 | 99.580% | 2.612% | BBB/Baa2 |
| Euro Bond 2028 - SLB | XS2457496359 | 500 | 1.500% | 16/03/2022 | 16/03/2028 | 99.308% | 1.622% | BBB/Baa2 |
| Euro Green Bond 2033 | XS2403533263 | 500 | 1.000% | 02/11/2021 | 02/11/2033 | 99.204% | 1.071% | BBB/Baa2 |
| Euro Bond 2031 - SLB | XS2364001078 | 500 | 0.625% | 15/07/2021 | 15/07/2031 | 99.547% | 0.672% | BBB/Baa2 |
| Euro Bond 2032 | XS2250376477 | 500 | 0.625% | 28/10/2020 | 28/10/2032 | 99.471% | 0.671% | BBB/Baa2 |
| Euro Green Bond 2029 | XS2026150313 | 400 | 1.000% | 16/07/2019 | 16/07/2029 | 98.683% | 1.139% | BBB/Baa2 |
| Euro Bond 2027 | XS1701884204 | 300 | 1.625% | 19/10/2017 | 19/10/2027 | 98.700% | 1.768% | BBB/Baa2 |
| Total | 4,950 |
Euro European Green Bond 2025-2035
On January 23, 2024, A2A successfully placed its inaugural European Green Bond of Euro 500m and tenor 10 years, the first on the market by a European corporate issuer. The European Green Bond was welcomed by a strong investor response gathering orders for about Euro 2.2bn, resulting in an oversubscription ratio of almost 4.4x. The notes, subject to the English Law and intended for institutional investors only, have been issued under A2A’s European Medium Term Notes Programme approved by the Italian competent authority (Commissione Nazionale per le Società e la Borsa – CONSOB) in December 2024 (as supplemented in January 2025) and was admitted to listing on the Electronic Bond Market (MOT) managed by Borsa Italiana S.p.A starting on January 30, 2025 and on the Regulated Market managed by Luxembourg Stock Exchange starting on March 20, 2025.
In accordance with the provisions of EU Regulation 2023/2631, the net proceeds of the issuance will be used to finance or refinance projects, without the use of the flexibility pocket, as outlined in the Factsheet verified by Sustainable Fitch, which will be published by the issue date in the relevant Sustainable Financing section of A2A’s website, The selected projects will be 100% aligned with the European Taxonomy, playing a pivotal role in implementing the Group’s Strategic Plan for energy transition and circular economy. These projects include the development of electricity network and renewable energy, energy efficiency and waste collection.
Citigroup, Crédit Agricole CIB and Intesa Sanpaolo (Divisione IMI CIB) acted as Global Coordinators, supporting A2A in the structuring of the ESG aspects of the transaction. BBVA, BofA Securities, BNP Paribas, Citigroup, Crédit Agricole CIB, Goldman Sachs International, J.P. Morgan, Intesa Sanpaolo (Divisione IMI CIB), Mediobanca, Morgan Stanley, Santander, Société Générale e UniCredit acted as Joint Bookrunners. A2A is assisted by the legal advisor Simmons & Simmons, whilst the Joint Bookrunners by Linklaters.
Isin Code Issued Amount (euro) Amount Outstanding (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2986639701 500,000,000 500,000,000 3.625 30/01/2025 30/01/2035 99.080 3.737 S&P's:BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesEuro Green Bond 2023-2034
On January 27, 2023, A2A successfully launched a new Green Bond with a size of € 500 mln and maturity 11 years. The new transaction was welcomed by a strong investor response: indeed, the total order book amounted to € 2.2bn, resulting in an oversubscription ratio of almost 4x. The new Green Bond, which is addressed to institutional investors only and has been issued under A2A’s Euro Medium Term Notes Programme, is based on the issuer’s Sustainable Finance Framework.
The net proceeds from the issuance will be used to finance and/or refinance strategic projects in the fields of circular economy and energy transition: the so-called Eligible Green Projects mainly related to renewable energy, transmission and distribution networks, energy efficiency, and pollution prevention and control, as defined in A2A’s Sustainable Finance Framework. A2A selected those projects which are eligible to the EU Taxonomy - the EU regulation that lists economic activities that can be considered sustainable.
In addition, A2A commits to disclose, as part of its allocation report, prepared in accordance with the Sustainable Finance Framework, also the actual amount of investments aligned to the EU Taxonomy that have been financed through this Green Bond.
Citigroup and Crédit Agricole CIB acted as Global Coordinators whilst BBVA, BofA Securities, BNP Paribas, Citigroup, Crédit Agricole CIB, Goldman Sachs International, Intesa Sanpaolo (Divisione IMI CIB), Mediobanca, Santander, Société Générale and UniCredit acted as Joint Bookrunners. A2A is assisted by the legal counsel Simmons & Simmons whilst the Joint Bookrunners by Allen & Overy.
Isin Code Issued Amount (euro) Amount Outstanding (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2583205906 500,000,000 500,000,000 4.375 03/02/2023 03/02/2034 998.824 4.513 S&P's:BBB
Moody’s:Baa* Date from which interest is paid
** Last date on which interest accruesEuro Green Bond 2022-2030
On September, 12 2022, A2A successfully launched a new Green Bond with a size of € 650 mln and maturity 8 years. The new transaction received a strong investor response: indeed, the total order book amounted above € 1.7 bn, implying an oversubscription ratio of almost 2.6x. The new Green Bond, which is addressed to institutional investors only and has been issued under the Euro Medium Term Notes Programme, is based on A2A’s Sustainable Finance Framework.
The net proceeds from the issuance will be used to finance and/or refinance strategic projects in the fields of circular economy and energy transition: the so-called Eligible Green Projects mainly related to renewable energy, transmission and distribution networks, energy efficiency, and pollution prevention and control, as defined in A2A’s Sustainable Finance Framework. A2A pre-emptively assessed the alignment of those green projects to the EU Taxonomy (with particular reference to the substantial contribution to the environmental objective of 'Climate Change Mitigation' and 'Climate Change Adaptation'). In addition, A2A commits to disclose, as part of its allocation report, prepared in accordance with the Sustainable Finance Framework, also the actual amount of investments aligned to the EU Taxonomy that have been financed through the Green Bond.
BNP Paribas and Mediobanca acted as Global Coordinators whilst BNP Paribas, Citigroup, Crédit Agricole CIB, Goldman Sachs International, IMI-Intesa Sanpaolo, JP Morgan, Mediobanca, Santander, and UniCredit acted as Joint Bookrunners. A2A is assisted by the legal counsel Simmons & Simmons whilst the Joint Bookrunners by Allen & Overy.Isin Code Issued Amount (euro) Amount Outstanding (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2534976886 650,000,000 650,000,000 4.500 19/09/2022 19/09/2030 99.677 4.549 S&P's:BBB
Moody’s:Baa* Date from which interest is paid
** Last date on which interest accruesEuro Green Bond 2022-2026
On June, 8 2022, A2A successfully launched a new Green Bond with a size of €600mln and maturity 4 years. The new transaction received a strong investor response: indeed, the total order book amounted above €1.7bn, implying an oversubscription ratio of almost 3x. The new Green Bond, which is addressed to institutional investors only and has been issued under the Euro Medium Term Notes
Programme, is based on A2A’s Sustainable Finance Framework.
The net proceeds from the issuance will be used to finance and/or refinance strategic projects in the fields of circular economy and energy transition: the so-called Eligible Green Projects mainly related to renewable energy, energy efficiency, and pollution prevention and control, as defined in A2A’s Sustainable Finance Framework.
A2A pre-emptively assessed the alignment of those green projects to the EU Taxonomy (with particular reference to the substantial contribution to the environmental objective of 'Climate Change Mitigation'). In addition, A2A commits to disclose, as part of its allocation report, prepared in accordance with the Sustainable Finance Framework, also the actual amount of investments aligned to the EU Taxonomy that have been financed through the Green Bond.
IMI-Intesa Sanpaolo and Santander acted as Global Coordinators whilst BBVA, BNP Paribas, Crédit Agricole CIB, Goldman Sachs International, IMI-Intesa Sanpaolo, Mediobanca, Santander, and UniCredit acted as Joint Bookrunners. A2A has been assisted by the legal counsel Simmons & Simmons whilst the Joint Bookrunners by Allen & Overy.
Codice ISIN Ammontare emesso (euro) Ammontare in circolazione (euro) Cedola annuale (%) Data emissione* Data scadenza** Prezzo emissione (%) Rendimento lordo a scadenza (%) Rating XS2491189408 600,000,000 600,000,000 2.500 15/06/2022 15/06/2026 99.580 2.612 S&P's:BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesProspectus for details
Euro Sustainability-Linked Bond 2022-2028
On March, 9 2022, A2A successfully launched a new Sustainability-Linked Bond with a size of €500mln and maturity 6 years. The new transaction received a strong investor response: indeed, the total order book amounted to €3.5bn, implying an oversubscription ratio of 7x.
The new Bond, which is addressed to institutional investors only and has been issued under the Euro Medium Term Notes Programme, is based on A2A’s Sustainable Finance Framework, updated in February 2022.The bond is linked to the achievement of a specific sustainability performance target related to the renewable energy capacity installation. This target, which is also included in the recently updated A2A 10-year strategic plan, commits A2A to reaching an installed capacity of 3.0 GWh (or higher) by 2024 and contributes to the achievement of UN SDGs 7 and 13.
Should A2A fail to reach the target, a 25bps coupon step-up will apply. In the event that A2A reaches the target, the coupon will remain unchanged until the maturity of the bond.Citigroup and Mediobanca acted as Global Coordinators whilst BBVA, BNP Paribas, Citigroup, Crédit Agricole CIB, IMI-Intesa Sanpaolo, JP Morgan, Mediobanca, Santander, Société Générale and UniCredit acted as Joint Bookrunners. A2A was supported by the legal counsel Orrick whilst the Joint Bookrunners were assisted by Allen & Overy.
ISIN Code Issued Amount (euro) Amount Outstanding (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2457496359 500,000,000 500,000,000 1.500 16/03/2022 16/03/2028 99.308 1.622 S&P's:BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesProspectus for details
A2A issued a new Sustainability-Linked Bond related to the Renewable Energy Capacity installation
Euro Green Bond 2021-2033
On October, 25 2021, A2A successfully launched a new Green Bond with a size of €500mln and maturity 12 years. The new transaction received a strong investor response: indeed, the total order book was in the region of € 1.6bn, implying an oversubscription ratio greater than 3x.
The new Green Bond, which is addressed to institutional investors only and has been issued under the Euro Medium Term Notes Programme, is based on A2A’s Sustainable Finance Framework.
The net proceeds from the issuance will be used to finance and/or refinance strategic projects in the fields of circular economy and energy transition: the so-called Eligible Green Projects mainly related to renewable energy and networks, as defined in A2A’s Sustainable Finance Framework. A2A pre-emptively assessed the alignment of those green projects to the EU Taxonomy (with particular reference to the substantial contribution to the environmental objective of 'Climate Change Mitigation').
In addition, A2A commits to disclose, as part of its allocation report, the actual amount of investments aligned to the EU Taxonomy that have been financed through the Green Bond.
BNP Paribas and Goldman Sachs International acted as Global Coordinators whilst BNP Paribas, Citi, Goldman Sachs International, IMI-Intesa Sanpaolo, JP Morgan, Mediobanca, Santander, Société Générale and Unicredit acted as Joint Bookrunners. A2A was supported by the legal counsel Orrick whilst the Joint Bookrunners were assisted by Allen & Overy.ISIN Code Issued Amount (euro) Amount Outstanding (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2403533263 500,000,000 500,000,000 1.000 02/11/2021 02/11/2033 99.204% 1.071% S&P's:BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesProspectus for details
A2A issues its first Green Bond with UoP aligned to EU Taxonomy
Euro Sustainability-Linked Bond 2021-2031
On July, 7th 2021, A2A successfully launched its inaugural Sustainability-Linked Bond with a size of € 500mln and maturity 10 years. The new transaction received a strong investor response: indeed the total order book peaked at € 1.2bn, implying an oversubscription ratio of 2.5x.
The new bond, which addresses only institutional investors and is issued within the Euro Medium Term Notes Programme, is based on the new Sustainable Finance Framework.
The bond is linked to the achievement of a specific sustainability performance target related to direct greenhouse gas emissions reduction (Scope 1) per kWh of energy produced. This target, which is also included in A2A 10-year strategic plan, commits A2A to cap the Group’s greenhouse gas emissions in 2025 at 296g CO2 per kWh (or lower), in line with the Science Based Target commitment approved in March 2020.
Should A2A fail to reach the target, a 25bps coupon step-up will apply. In the event that A2A reaches the target, the coupon will remain unchanged until the maturity of the bond.
JP Morgan and UniCredit acted as Global Coordinators in the transaction whilst BBVA, BNP Paribas, Citi, IMI-Intesa Sanpaolo, Mediobanca, JP Morgan, Santander, Société Générale and UniCredit acted as Joint Bookrunners. A2A was supported by the legal counsel Orrick whilst the Joint Bookrunners were assisted by Allen & Overy.
ISIN Code Issued Amount (euro) Amount Outstanding (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2364001078 500,000,000 500,000,000 0.625 15/07/2021 15/07/2031 99.547 0.672 S&P's:BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesProspectus for details
A2A, issued its inaugural sustainability-linked bond
Euro Bond 2020-2032
On 21 October 2020, A2A has successfully launched the issue of a twelve-years bond for a total amount of 500 million euro, exclusively targeted at institutional investors, under its Euro Medium Term Notes Program, last updated on 28 July 2020 (supplemented by a supplement of 20 October 2020).
The notes were placed at an issue price equal to 99.471% and have an annual yield of 0.671%, an annual coupon of 0.625%, with a spread of 85 basis points over the reference mid-swap rate.
At the issue date, this transaction marks the lowest ever coupon for an Italian corporate issuance of more than 10 years.
The bonds are governed by English law and are listed on the regulated market of the Luxembourg Stock Exchange as of October 28, 2020.
The new notes are assigned a rating by Moody's and Standard & Poor's.
The issue is in line with the financial strategy aimed at maximizing the efficiency in terms of increasing the average duration of the Group’s debt, reducing the average cost of debt and optimising the debt redemption profile, with a proactive funding management aimed at seizing all the opportunities offered by the capital market.
The placement of the notes is managed by Goldman Sachs International. A2A was assisted by the law firm Legance - Avvocati Associati.ISIN Code Issued Amount (euro) Amount Outstanding (euro) Annual coupon (%) Issue date* Maturity date** Issue price (%) Re-offer Yield (%) Rating XS2250376477 500,000,000 500,000,000 0.625 28/10/2020 28/10/2032 99.471 0.671 S&P's: BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesProspectus for details
Euro Green Bond 2019-2029
On 8 July 2019, A2A has successfully launched the issue of a ten-year green bond for a total amount of 400 million euro, exclusively targeted at institutional investors under its Euro Medium Term Notes Programme.
The notes have an annual coupon of 1.000% and were placed at an issue price equal to 98.693%, with a spread of 105 basis points over the reference mid-swap rate.
The bonds, governed by English law, and listed on the regulated market of the Luxembourg Stock Exchange as of July 16, 2019.
Net proceeds will finance and/or re-finance eligible green projects related to circular economy, decarbonization as well as smart network and services: investments in water and waste treatment, renewable energy development, energy efficiency, sustainable mobility and network upgrade.
The issue is in line with A2A’s financial and sustainable (ESG) strategies, confirming its green vocation and the constant attention to a transparent disclosure towards all its stakeholders.
The placement of the new notes was managed by BBVA, BNP Paribas – Green Structuring Advisor, Mediobanca, UniCredit, as Joint Bookrunners. A2A was assisted by the law firm Legance - Avvocati Associati and the banks by Allen & Overy.ISIN Code Issued Amount (euro) Amount Outstanding (euro) Annual coupon (%) Issue date* Maturity date** Issue price (%) Re-offer Yield (%) Rating XS2026150313 400,000,000 400,000,000 1.000 16/07/2019 16/07/2027 98.693 1.139 S&P's: BBB
Moody’s:Baa2* Date from which interest is paid
** Last date on which interest accruesProspectus for details
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A2A hybrid bonds
In June 2024 the first perpetual hybrid Green Bond – with the use of proceed format – was issued with a size of € 750 Million. The issuance was executed on a stand-alone basis (outside the EMTN Programme) and a rating of “BB+” by Standard and Poor's and “Ba1” by Moody's was assigned to the notes.
The bonds of the A2A Group are listed below.
| Bond | ISIN | Outstanding Amount, €M |
Annual Coupon |
Issue Date | Maturity Date | Issue Price | Re-offer Yield | Rating (S&P/Moody’s) |
|---|---|---|---|---|---|---|---|---|
| Euro Green Hybrid Bond | XS2830327446 | 750 | 5.000% (until the First Reset Date) | 11/06/2024 | Perpetual | 99.46% | 5.125% | BB+/Ba1 |
| Total | 750 |
Euro Green Hybrid Bond Perpetual
On 4th June 2024 A2A launched its first subordinated perpetual hybrid Green – use of proceeds bond with a size of € 750mln.
The transaction, carried out in execution of the resolution of the Company's Board of Directors of 14 May 2024 and of the decision (the so-called "determina”) of the Chairman adopted today, was welcomed by a strong investor response: indeed, the total order book amounted to € 2.9bn, resulting in an oversubscription ratio of almost 4x.
The notes, characterized by a non-call period of 5.25 years and perpetual maturity, have been issued at a reoffer price of 99.460% and will pay an annual fixed coupon of 5.000% until the first reset date scheduled on 11 September 2029. From that date, unless early redemption has taken place, the notes will accrue annual interests equal to the 5-year Euro Mid-Swap rate plus an initial spread of 225.8 basis points, increased by a further spread of 25 basis points from 11 September 2034 and an additional increase of 75 basis points from 11 September 2049.
The notes are subject to the English Law and will be listed on the Luxembourg Stock Exchange from the 11 June 2024 once all the relevant documentation will be signed.
A rating of “BB+” by Standard and Poor's and “Ba1” by Moody's and an equity content of 50% have been assigned to the notes.BNP Paribas, Goldman Sachs International, J.P. Morgan and UniCredit acted as Structuring Agents and Global Coordinators whilst BBVA, BofA Securities, Crédit Agricole CIB, Citigroup, Intesa Sanpaolo (IMI Corporate & Investment Banking Division), Mediobanca, Morgan Stanley, Santander and Société Générale acted as Joint Lead Managers.
A2A is assisted by the legal counsel Clifford Chance whilst the banks by A&O Shearman.Isin Code Issued Amount (euro) Annual Coupon (%) Issue Date* Maturity Date** Issue Price (%) Reoffer Yield (%) Rating XS2830327446 750,000,000 5.000% (until the First Reset Date) 11/06/2024 Perpetual 99.46 5.125 S&P's:BB+
Moody’s:Ba1- A2A Hybrid 2024 - ProspectusPDF (2.00 Mb)
Sustainable finance
For A2A Sustainable Finance is one of the enabling levers of its Strategic Plan 2024-2035
In line with the Group's long-term strategy, A2A is committed to reaching over 90% by 2030 and 100% by 2035 of the share of sustainable debt out of total gross debt.
Rating
Rating Agencies’ assessment on A2A’s creditworthiness witnesses the sound financial position of the Group.
The view of rating agencies on A2A debt.
A2A rating
| Agencies | View | Current rating | Last change date | Last review date |
|---|---|---|---|---|
| Standard & Poor's | M/L Term Rating Short-Term Rating Outlook |
BBB A-2 Stable |
09/08/2023 | 12/20/24 |
| Moody's | M/L Term Rating Outlook |
Baa2 Stable |
11/22/2023 | 03/15/24 |
