World-first: Only global SLB to include Net Zero targets across Scope 1, 2, and 3 emissions.
Strong demand: Bond was 5x oversubscribed, with $10B in orders from institutional investors.
Diversification milestone: Marks Snam’s debut in US markets; over 10% of its medium/long-term funding is now in foreign currency.
Snam has successfully placed a $2 billion multi-tranche USD-denominated Sustainability-Linked Bond (SLB), marking a historic first in sustainable finance: a Net Zero target across Scope 1, 2, and 3 GHG emissions.
This debut transaction—the largest of its kind by a European investment-grade regulated issuer in 2025—was executed under Rule 144A/Reg S format and drew orders totaling $10 billion. The offering was oversubscribed five times, signaling strong investor appetite for high-integrity ESG commitments.
“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 Agostino Scornajenchi, Snam CEO.
Structured in three tranches with maturities of 5, 10, and 30 years, the weighted average interest in euro-equivalent terms is approximately 4%. Proceeds will further support Snam’s transition and sustainability objectives, in line with its Sustainable Finance Framework released in April.
RELATED ARTICLE: Snam Signs €4 billion Sustainability-linked Revolving Credit Line, Targets Reduction of Scope 3 Emissions
The bond’s performance metrics are directly linked to Snam’s ambitious GHG reduction targets:
Scope 1 & 2: –25% by 2027, –50% by 2035, –90% by 2050
Scope 3: –35% by 2032, –90% by 2050
Net Zero: Across all scopes by 2050, with up to 10% offsets allowed
This issuance increases the share of sustainable finance in Snam’s funding mix to 86%, closing in on its 90% goal by 2029.
“The strong interest shown by US fixed-income investors, together with the broad US investor base in our shareholding, reaffirms the high confidence in Snam’s sustainable strategy, financial soundness and our long-term industrial vision,” Scornajenchi added.
Tranche Details:
5-Year: $750M, 5.000% coupon, 5.113% yield, maturing May 28, 2030
10-Year: $750M, 5.750% coupon, 5.777% yield, maturing May 28, 2035
30-Year: $500M, 6.500% coupon, 6.522% yield, maturing May 28, 2055
Joint bookrunners included Barclays, BNP Paribas, BofA Securities, Citigroup, Goldman Sachs International, HSBC, J.P. Morgan, Morgan Stanley, SMBC, and Société Générale.
This issuance not only cements Snam’s role as a sustainability leader in the global energy infrastructure space but also demonstrates increasing investor confidence in credible climate transition plans.
Follow ESG News on LinkedIn
