- Record Sustainability Financing: Largest revolving credit facility in the utilities sector for 2024, linked to ambitious climate KPIs, including Scope 3 emissions.
- Commitment to Net Zero: Supports Snam’s roadmap to achieve carbon neutrality by 2040 and net zero by 2050.
- Strong Financial Backing: Backed by 24 financial institutions, enhancing flexibility and streamlining Snam’s financial structure.
Snam Signs €4B Sustainability-Linked Credit Facility
Snam has finalized a €4 billion sustainability-linked revolving credit facility, marking a significant milestone in its commitment to achieving carbon neutrality by 2040 and net zero by 2050. The credit line, aligned with Snam’s Sustainable Finance Framework, includes KPIs tied to reducing Scope 1, 2, and 3 emissions and increasing gender diversity in leadership roles.
“This credit facility is another important step in Snam’s roadmap to achieve carbon neutrality and net zero, with sustainable finance playing a key role,” said Luca Passa, Chief Financial Officer of Snam.
Key Features of the Facility
- Structure: Two tranches of €2 billion each, with maturities of three and five years, and the option to increase by €1.1 billion.
- Sustainability Targets: Performance-linked margin adjustments based on achieving climate and diversity KPIs, including reducing Scope 3 emissions.
- Aligned with Goals: Supports Snam’s target to ensure 85% of total funding comes from sustainable finance by 2027.
Related Article: DP World Launches Carbon Inset Programme to Help Importers Cut Scope 3 Emissions
Financial Flexibility and Backing
The credit line enhances Snam’s financial flexibility and reinforces its financial structure. It is supported by a consortium of 24 global financial institutions, including Mediobanca, Intesa, UniCredit, Bank of America, and MUFG, as well as BNP Paribas, CaixaBank, and Société Générale.
“This transaction consolidates our financial flexibility and reinforces our commitment to sustainable finance,” Passa added.
Broader Climate Commitment
This facility builds on Snam’s recent €1.5 billion dual-tranche Sustainability-Linked bond, including its UK market debut. Together, these initiatives highlight Snam’s leadership in sustainable finance and its strategic focus on addressing climate change and diversity challenges through innovative financing solutions.
Snam’s efforts set a precedent in the utilities sector, underscoring the role of sustainable finance in driving the energy transition.
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