Snam, 4 billion credit line with sustainable objectives

Snam has signed a new Sustainability-linked credit line, i.e. linked to sustainability objectives including environmental ones, for a total amount of EUR 4 billion. The credit line, which can be increased by another 1.1 billion, "is the most significant revolving credit line in the utilities sector in the year that includes a performance index linked to the reduction of Scope 3 emissions". The deal 'consolidates Snam's financial flexibility, streamlines the company's financial structure and reinforces the Group's commitment to guarantee 85% of total funding from sustainable finance by 2027,' a note explained.

"This new line marks another important step in Snam's roadmap to achieve Carbon Neutrality by 2040 and Net Zero by 2050, with sustainable finance playing a key role," says Luca Passa, cfo of Snam. The credit line, granted by 24 financial institutions, including Mediobanca (acting as global coordinator, documentation and facility agent), Intesa and UniCredit (global coordinators) and Bank of America and Mufg (sustainability coordinators) consists of two tranches, each of EUR 2 billion, with an initial maturity of three and five years respectively. Key Performance Indicators include Ghg Scope 1&2 emissions, Ghg Scope 3 emissions and women in senior and middle-management roles.