February 3, 2023

Eni launches 1 billion retail bond: here’s everything you need to know

2 min read

Aimed at the Italian public, the bonds will have a maturity of 5 years

Eleven years later, Eni returns to launch a bond dedicated only to the Italian public and for the first time linked to sustainability goals. “A solid savings instrument that can make it part of our journey towards a fully decarbonized, technologically advanced and diversified energy, and of the further consolidation of our decisive capacity to guarantee energy security for the country,” explains Eni CEO Claudio Descalzi.

The offering

The €1 billion bonds are being offered starting Jan. 16 and will have a five-year term. If there is demand that goes beyond the offer, the amount can be increased up to 2 billion euros. The minimum lot that can be subscribed, Eni explains, is 2,000 euros (equal to 2 bonds), with possible increases equal to at least 1 bond, with a nominal value of 1,000 euros each. The principal, the energy group explains, will be repaid in full when the loan matures (Feb. 10, 2028). The bonds will pay subscribers, annually and in arrears, interest at a fixed rate that cannot be less than 4.30 percent. There is no underwriting fee or charge for subscribing to the offer. The transaction was approved by Eni’s board of directors on Oct. 27, 2022, and the bonds pursue the objective of financing any future needs, maintaining a balanced financial structure and further diversifying financial sources. Eni, Descalzi explains, “is today an extremely financially and industrially robust company, with a growth model aimed at making the most of the businesses related to the energy transition and the traditional ones that fuel its success, which are also subject to the progressive reduction of emissions and continue to guarantee security of supply.”

The Prospectus

As described in the Prospectus, the final coupon payable on Feb. 10, 2028, will be linked to the achievement of Eni’s sustainability targets: reduction of net greenhouse gas emissions (Scope 1 and Scope 2) associated with the operations of the upstream business; and increase of installed capacity for electricity generation from renewable sources to 5 Gigawatts or more as of Dec. 31, 2025. If even one of the two targets is not achieved, the interest rate related to the coupon payable on the maturity date (February 10, 2028) will be increased by 0.50 percent, as described in the Prospectus.