Iren and the bond issue
Iren, one of the leading companies in the public services sector in Italy, recently announced the success of its first perpetual subordinated hybrid bond issue, with a nominal value of 500 million euros. This transaction represents a significant step for the company, which aims to further strengthen its capital structure and to support the Group’s financial flexibility
.
High subscription requests
The market response was exceptional, with subscription requests that exceeded the amount offered by almost eight times the amount offered. In total, Iren received orders worth 4 billion euros, demonstrating strong interest from qualified investors. This level of demand highlights confidence in the company’s growth plan and in its integration strategy with EGEA, in addition to the implementation of the investments envisaged in the 2024-2030 Business Plan.
Details of the bond issue
The bond was issued in a single tranche and has specific characteristics: it is non-convertible, subordinated and perpetual, due only in the event of the dissolution or liquidation of the company. The fixed annual coupon is set at 4.5% and will be paid until the first reset date. Starting from that date, the bond will accrue interest equal to the five-year Euro Mid Swap reference rate, increased by an initial margin of 221.2
basis points.
Implications for Iren’s future
This bond issue not only confirms Iren’s commitment to maintaining an investment grade rating, but it also represents an opportunity for the company to seize new potential inorganic opportunities. With the margin that will increase by 25 basis points starting in 2035 and by an additional 75 basis points from 2050, Iren is preparing to manage future challenges with a solid financial base. The securities will be listed on the regulated market of the Irish Stock Exchange (Euronext Dublin), making them accessible to
a wide range of investors.