Turin, 16 Jan. – (Adnkronos) – Iren has today successfully placed its first perpetual subordinated hybrid bond issue with a nominal value of 500 million euros. The issue received subscription requests almost 8 times the amount offered, totaling orders for an amount equal to 4 billion euros. The settlement date of the issue is scheduled for 23 January.
The transaction, aimed at further strengthening the capital structure and supporting the financial flexibility of the Group, a note underlines, is consistent with Iren's growth strategy aimed at integrating Egea, seizing new potential inorganic opportunities in addition to the implementation of the investments envisaged in the 2024-2030 Business Plan and confirms Iren's commitment to maintaining the current investment grade rating. The annual fixed coupon of 4,5% will be paid until the first reset date of 23 April 2030. From that date, unless it has been fully repaid, the security will accrue interest equal to the reference five-year Euro Mid Swap rate increased by an initial margin of 221,2 basis points. The margin will increase by 25 basis points starting from 2035 and by a further 75 basis points from 2050 for a cumulative amount of 100 basis points.
The fixed coupon is payable annually in arrears in the month of April, starting from April 2025. The issue price is set at 99,448% and the effective yield at the first reset date is equal to 4,625% per annum. The securities, intended for qualified investors, will be listed on the regulated market of the Irish Stock Exchange (Euronext Dublin). It is also expected that they will be assigned by the agencies a rating of BB+/BB+ (S&P's/Fitch) and an equity content equal to 50%.
"We are pleased to announce that 2025 opens with the inaugural issuance of a 500 million euro hybrid bond. The market reception beyond expectations has led us to obtain an extraordinary result, with demand that exceeded supply by almost 8 times, totaling orders for an amount of over 4 billion euros, demonstrating the solidity and credibility of Iren on the market. – commented Luca Dal Fabbro, Executive Chairman of the Iren Group – this initiative is perfectly in line with our growth strategy, which includes the integration of Egea and the implementation of the investments planned in our 2024-2030 Industrial Plan, allowing us to maintain adequate financial flexibility to seize any further development opportunities".
“We are satisfied with the outcome of today's transaction, which allows us to further strengthen the capital structure of our Group while also diversifying the investor base,” added Giovanni Gazza, CFO of the Iren Group. “The issuance of the hybrid bond guarantees high financial flexibility to support the achievement of the economic and financial targets set in the Industrial Plan, and reflects Iren's commitment to pursuing growth in compliance with robust credit metrics in line with the current investment grade ratings.”