CDP, Euro 500 million bond issue closed successfully
Press release

CDP, Euro 500 million bond issue closed successfully

This is the first Italian Sustainability Bond. The operation aims at providing liquidity to finance local investments in the water sector.

  • The Fixed Rate Bond, unsubordinated and unsecured, addressed to institutional investors, has a duration of 5 years with an annual coupon of 2.125% and a price of 99.766%
  • The demand, with about 60% subscribed by foreign investors, has been of over Euro 1 billion


Rome, 18 September 2018 h 8.56pm - Cassa depositi e prestiti Spa (CDP) today successfully launched the first Italian “Sustainability Bond”, consistent with guidelines issued by the International Capital Markets Association.

The proceeds collected under the new "Green, Social and Sustainability Framework" will allow CDP to finance projects with environmental and social impact in four specific areas: Infrastructures and Development of Cities, Education, SMEs Financing, Energy and Environmental Sustainability, contributing to the achievement of the United Nations Sustainable Development Goals.

The fixed rate note issue, addressed to institutional investors, unsubordinated and unsecured, for a nominal amount of Euro 500 million, follows the first Italian Social Bond issued by CDP in 2017. In consideration of the positive market feedback and the amount of orders received (~ 2x the offer), the price has been fixed at 25 basis points above the reference BTP, 10 basis points lower than the initial pricing guidance. A price substantially in line with the yield curve recognized by CDP on its secondary market.

The issue, addressed mainly to the so-called Socially Responsible Investors, closed with purchase orders of more than Euro 1 billion from about 80 investors, with a strong presence of foreign investors, who accounted for 60% of the demand.

With this transaction, CDP reaffirms the intention to intensify its activity in favor of the Italian territory. The issue aims mainly at providing the necessary liquidity for the construction and modernization of the Country's water infrastructures. The "Sustainability Bond" proceeds will help bridging the significant infrastructural gap that characterizes the sector, favoring investments’ recovery and increase operational efficiency.

The Notes – issued under CDP Debt Issuance Programme (DIP) amounting to Euro 10 billion listed on the Luxembourg Stock Exchange – has a duration of 5 years (maturity 27 September 2023), with an annual coupon of 2.125% and a price of 99.766%.

As for the investors’ breakdown, 37% of subscribers were banks, 29% investment funds and asset managers, 22% insurance companies, and the remaining 12% central banks and other investors.

The Notes, which will be listed on the Luxembourg Stock Exchange, have an expected rating equal to the medium-long term rating assigned to CDP, which is aligned with the Republic of Italy’s sovereign rating: BBB (stable) for Standard & Poor’s, Baa2 (under review for possible downgrade) for Moody’s, BBB (negative) for Fitch and A- (negative) for Scope.

Banca IMI, BNP Paribas, Crédit Agricole CIB, Goldman Sachs International, MPS Capital Services, Santander, e Unicredit Bank AG acted as Joint Lead Managers and Joint Lead Bookrunners for the transaction.

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