Ferrovie dello Stato Italiane has placed a new issue of green bonds worth EUR 650 million, maturing in June 2031. The proceeds will be used to finance eligible green projects in Italy in the areas of passenger transport and railway infrastructure.
Ferrovie dello Stato Italiane (FS), Italy’s state-owned railway group, has completed the placement of a new issue of green bonds worth EUR 650 million.
The issue has a maturity of 5 years, maturing in June 2031, and was carried out under the company’s EMTN program, an instrument used to raise funds on international capital markets.
The transaction is part of the debt strategy approved by the FS Group in March and reaffirms the role of sustainable financing in supporting the company’s investments in rail mobility and infrastructure.
The funds will go toward green rail projects
The proceeds will be used to finance eligible green projects in Italy, in accordance with FS’s current Green Bond Framework.
According to the company, the funds will be directed toward investments in passenger rail transport and rail infrastructure, projects that are fully aligned with the EU Taxonomy.
The EU Taxonomy establishes the criteria by which economic activities can be considered environmentally sustainable, including in the fields of transportation and infrastructure.
The bond’s coupon was set at 3.25%, and the final spread was 54.7 basis points above the mid-swap reference rate.
The securities will be listed on Euronext Dublin and on MOT, the electronic bond market operated by the Italian Stock Exchange.
Demand 3.2 Times Higher Than Supply
The offering attracted demand approximately 3.2 times higher than the supply, one of the best results achieved by FS for such transactions.
The company received approximately 90 orders from investors, with significant participation from abroad.
FS notes that most of the demand came from ESG investors, who are interested in environmental, social, and governance criteria.
Furthermore, SSA investors—sovereign, supranational, and agency investors—accounted for approximately 38% of the total allocation.
According to the Italian group, the quality and diversity of the order book, including in terms of international participation and ESG investors, confirm the effectiveness of FS’s ongoing dialogue with the financial community.
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