Eni Raises €3 Billion through Hybrid Note Issuance

By Isha Makkar
October 07, 2020
2 minutes read
Eni HQ in Rome

Italian energy major Eni SpA has closed an offering of an aggregate of €3 billion of hybrid notes, comprised of €1.5 billion of 2.625% Perpetual Subordinated Non-Call Hybrid Notes, and €1.5 billion aggregate principal amount of 3.375% Perpetual Subordinated Non-Call Hybrid Notes. The notes have been issued under the company’s Medium Term Notes prospectus published on October 2nd, 2020, which allows for maximum proceeds of €20 billion to be raised under the programme.

The notes have been issued to institutional investors mainly in the United Kingdom, France, Germany, and Italy. Eni intends to use the proceeds of the offering to pre-fund its future financial needs and to maintain a well-balanced financial structure.

The First Reset Date for the 2.625% Hybrid Notes is January 13th, 2026, and for the 3.375% Hybrid Notes, it is October 13th, 2029. The notes will bear a fixed interest rate until the First Reset Date, and a revised interest rate thereafter, depending on the relevant interest period. The revised interest rate will be calculated with reference to the 5-year Euro Mid Swap Rate, plus a specified margin.

The offering is the largest such placement ever issued by an Italian corporate, with total orders received amounting to approximately €14 billion in the international Eurobond market.

“We have achieved a great result with our first hybrid bonds issuance, which demonstrates the capital markets’ confidence in our financial robustness and our new energy transition strategy, despite the high volatility of the scenario. The equity component of the hybrid bonds further strengthens our capital structure and supports our credit profile,” said Claudio Descalzi, CEO of Eni.

Barclays Bank Ireland, BNP Paribas, Citibank, Goldman Sachs International, HSBC Bank, Santander, SMBC SI, and UniCredit Bank acted as joint lead managers for the offering.

The notes will be listed and traded on the Luxembourg Stock Exchange (LuxSE), with the settlement of the offering expected to occur on October 13th.

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