SIT has issued, with the support of Unicredit, 10-year bond entirely subscribed by PRICOA Capital Group. The bond allows SIT to diversify its funding sources, highlighting the Group’s close focus on sustainability themes and climate change.

 

Padua, May 19, 2021 – SIT S.p.A. (SIT:IM) today completed, with the support of Unicredit, the placing of a non-convertible bond for a value of Euro 40 million, entirely subscribed by PRICOA Private Capital Group – a company of the US Group Prudential Financial, Inc. (NYSE:PRU).

The bonds were issued in a single tranche and have 10-year duration, with a 6-year pre-amortisation period.  The bond carries a fixed half-yearly coupon – indexed from the fifth year to a sustainability rating (“ESG”) provided by the international agency EcoVadis.

Today’s issue, which highlights the Group’s close focus on sustainability, climate change and the energy transition, is part of a Shelf agreement which gives SIT the right to request PRICOA, on an uncommitted basis, over the next three years to subscribe to additional bonds, up to a total amount of USD 100 million (or Euro equivalent).

With this transaction, SIT diversifies its funding sources, improves its financial flexibility and significantly lengthens its average debt duration. The funds raised will be used to refinance partially the bank debt also deriving from the recent acquisition of Janz, a Portuguese company operating in the water metering business.

“The placement of a sustainability-linked bond is part of an overall strategy constantly aware of ESG themes as SIT has been doing for a number of years now” stated Federico de’ Stefani, Chief Executive Officer and Chairman of SIT. “Sustainability is part of our mission and a core principle applied across our company, having been integrated into business decisions and growth strategies, and which is further underscored by today’s transaction which we consider highly significant – as is the commitment of the investor PRICOA to our company”. 

UniCredit acted as Sole Arranger and Sole Sustainability Advisor. Studio Chiomenti acted as legal advisor to the Issuer and Studio Ashurst as legal advisor to the Investor. BNY Mellon operates as settlement and payment agent.