Italgas: 500 million euro bond issuance successfully completed

NOT TO BE PUBLISHED OR DISTRIBUTED IN THE UNITED STATES, AUSTRALIA, CANADA AND JAPAN

 

Italgas: 500 million euro bond issuance successfully completed

 

Milan, 17 June 2020 – Today Italgas S.p.A. (rating BBB+ by Fitch, Baa2 by Moody’s) successfully priced a new fixed rate note, with June 2025 maturity for an amount of 500 million euros with an annual coupon of 0.250% under its EMTN Programme (Euro Medium Term Notes).

Today’s issuance provides a pre-funding for the financial needs linked to the Group growth strategy, confirms the solidity of its business model and the capacity to attract funds at competitive conditions.

The transaction has gathered a demand of almost 2 billion euros from a high quality and geographically diversified investor base.

Joint Bookrunners of the placement, restricted to institutional investors only, were Banca IMI,Barclays, BNP Paribas, Goldman Sachs, JPMorgan, Mediobanca, SocGen and UniCredit.

The bond will be listed on the Luxembourg Stock Exchange.

Details are as follows:

Amount: 500 million euro

Maturity: 24 June 2025

Annual coupon: 0.250%

Issue price: 99.205%

DISCLAIMER

This announcement (and the information contained therein) does not constitute or form part of any offer to sell nor a solicitation of any offer to buy any securities nor shall there be any offer of securities in any jurisdiction in which such offer or sale would be unlawful. It may be unlawful to distribute this announcement in certain jurisdictions. This announcement does not constitute an offer of securities for sale in the United States, in Australia, Canada and Japan and in any jurisdiction in which such offer or sale would be unlawful and is not for publication or distribution in any such jurisdictions. The securities referred to in this announcement have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This announcement is not a public offer of financial securities in Italy as per Article 2, letter d), of Regulation (EU) 2017/1129. The documentation relating to the offer has not been/will not be submitted to the approval of CONSOB.

Conference Call: 2020 Performance update

Italgas Top Management presents an update on 2020 performance and on the impact of the Covid-19 emergency on business.

Conference Call for the presentation to the community will be on Thursday June 11, 2020 – 3:00 PM CEST

Click on the following link to watch the presentation live.

WATCH LIVE

 

https://www.italgas.it/en/press-release/Italgas-The-BoD-examines-the-operating-performance/

 

Italgas The BoD examines the operating performance

Italgas: the Board of Directors examines the expected performance of operations in 2020 and the expected impact on business of the Covid-19 emergency

 

Milan, 11 June 2020 – The Italgas Board of Directors met yesterday under the chairmanship of Alberto Dell’Acqua to examine the expected operating performance in 2020 and the impact on business of the Covid-19 emergency.

 

Guidance 2020

  • Revenues: more than €1.3 billion
  • EBITDA: € 960-980 million
  • EBIT: € 530-550 million
  • Capex: more than € 700 million
  • Net Debt: approximately € 4.5 billion[1]
  • Leverage: approximately 60%

The performance achieved in recent months and the speed at which almost all the network construction sites have resumed their activities demonstrate the Company’s ability to react using all the new technologies developed by the Digital Factory.

The effects of the ongoing digital transformation are now very clear: more efficient remote management of the network and increased control on the territory served with the use of innovative technologies such as “gas leakege detection”, “shareview”, “work on site”. All this has made possible to guarantee the continuity and security of essential services in all the municipalities served.

Thanks to the use of the cloud and the availability of digital tools for all staff, the Company reduced staff mobility and adopted the smart way of working all over the territory ensuring people’s health and safety.

In this first part of the year the Company also achieved a series of important objectives; Italgas

– was awarded the tender for the Atem of Belluno, which is equivalent to an immediate growth of about 40,000 pdr served and another 38,000 in the future;

– was included in the shortlist of candidates in the international tender for the purchase of DEPA Infrastructure S.A., the Greek company that controls the country’s natural gas distribution activities;

– acquired from AEG Coop 15% of the company Reti Distribuzione, which operates in 49 municipalities in Piedmont, mainly in Ivrea and the surrounding areas;

– had its credit rating confirmed by Fitch, despite the that Italy’s sovereign credit rating has been downgraded.

Conference call – A conference call will be held at 3:00 p.m. CET today to update the financial community on the performance of operations in 2020 and the expected impact on operations of the Covid-19 emergency. The presentation can be followed by audio webcasting on the Company website (www.italgas.it). In conjunction with the launch of the conference call, the presentation support material will also be made available in the Investor Relations/Presentations section of the website.

[1] The net financial debt expected for 2020 does not consider financial debt for leasing pursuant to ex IFRS 16. Their estimate is substantially in line with the values expressed at 31 December 2019.

Italgas is awarded the concession of gas distribution service in the “Belluno” district

Plans for extending the networks to serve additional 17 new municipalities, on top of the 34 currently served with methane, increasing the number of users served from 47 thousand to about 85 thousand.

 

 

Milan, 3 June 2020 – The Belluno contracting authority has officially awarded Italgas the tender for the 12-year concession of the natural gas distribution service in the “Belluno” area. The concession awarded allows Italgas to increase the number of users served by approximately 40,000 units.

In the area there are currently 34 methanized municipalities, served by approximately 990 kilometres of networks, for a total of 47,000 end users and a RAB of over 43 million euro.

In its offer Italgas planned investments of approximately 135 million euro aimed at extending the networks – for over 300 km – to areas not reached by the service yet, at completely digitizing the existing infrastructures, at improving the quality and safety of the service and at executing energy efficiency interventions on over 60 public buildings. With the extension of the network, 17 new municipalities will be methanized, giving more than 38,000 end-users the possibility to connect to the natural gas distribution network.

Such investments will generate a strong boost for the local economy, with effects in terms of employment, and the extension of the service to new territories will also guarantee significant savings in bills and a substantial reduction in polluting emissions.

“The awarding of the Atem Belluno to Italgas – commented the Company’s CEO, Paolo Gallo – is a further confirmation of how the tenders bring significant advantages to the territory. 135 million euros earmarked for investments in new networks, their digitization, energy efficiency, improving the service where it already exists, and bringing it to new municipalities, are a demonstration of how Italgas can contribute to the development of a territory at a particularly difficult time for the country”.

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