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2026-04-09 19:08:14
[Italgas' 6-Year Eurobond Subscription Surpasses €2.5 Billion, Spread Anchored at 78 Basis Points] ⑴ Italgas, the Italian gas infrastructure operator, launched its 6-year euro benchmark bond issuance on Thursday, with subscriptions exceeding €2.5 billion. The final issuance spread is set at 78 basis points above the swap rate midpoint, with an expected issuance size of approximately €650 million. ⑵ The initial price guidance for the bond was approximately 110 basis points above the swap rate midpoint. After book-building, the spread narrowed significantly by 32 basis points. Settlement will be completed on April 16, with a maturity date of April 16, 2032. Coupon payments are made annually. ⑶ BNP Paribas, BofA Securities, Crédit Agricole, Intesa Sanpaolo, JPMorgan Chase, Mediterranean Investment Bank, and Société Générale are acting as joint bookrunners, with Société Générale also serving as the structure designer. (4) Italgas' current credit ratings are Moody's Baa2 stable outlook, S&P BBB+ stable outlook, and Fitch BBB+ stable outlook, with the expected bond rating consistent with the issuer's rating. (5) Comparable bond data in the secondary market shows that Italgas' outstanding bonds maturing in June 2032 with a coupon rate of 4.125% have a spread of approximately 73 basis points, and its zero-coupon bonds maturing in February 2033 have a spread of approximately 80 basis points. The pricing of this new bond is within a reasonable extension range of the existing yield curve. (6) Among comparable Italian utilities in the same period, the spread of bonds maturing in 2031 for the State Power Corporation is approximately 64 basis points, for the Railway Network Corporation's bonds maturing in 2032 it is approximately 63 basis points, and for the Natural Gas Storage Corporation's bonds maturing in 2032 it is approximately 72 basis points. (7) Analysts believe that against the backdrop of geopolitical uncertainty fueling risk aversion in Europe, Italgas, with its regulated asset stability and strategic position in Italy's natural gas infrastructure, still successfully attracted over 4 times oversubscription, highlighting the scarce allocation value of defensive utility bonds in the current market conditions.
