CDP successfully concluded the “Social” bond issue of 750 million euro
Press release

CDP successfully concluded the “Social” bond issue of 750 million euro

The transaction aims at providing resources for the financing of school buildings and urban redevelopment initiatives with a particular focus on safety

  • The fixed rate, unsubordinated and unsecured issue, aimed at institutional investors, has a duration of 7 years, with an annual coupon of 2.125% and a price of 99.288%
  • The demand was about 1.7 billion euro, from over 100 investors

Rome, 18 March 2019 h 9:09 pm

Cassa depositi e prestiti Spa (CDP) has launched today a new Social Bond on the capital market, in accordance with the guidelines issued by the International Capital Markets Association (ICMA). The proceeds raised from this issue will be used to finance and/or refinance all or part of eligible projects identified and/or to be identified in accordance with the Social Bond Principles published by the ICMA. In this regard, CDP has prepared and published a Green, Social and Sustainability Bond Framework to provide investors with transparency and commitment from CDP regarding this type of bond issue. The Framework and the Second Party Opinion, provided by the independent advisor Vigeo Eiris, are available to the public on CDP’s website (

The fixed rate, unsubordinated and unsecured issue, with a nominal value of 750 million euro, is aimed at institutional investors and follows the Sustainability Bond issued last September. Based on the positive market feedback and the amount of orders received (over 2x the offering), the price of the transaction has been set at 195 basis points above the benchmark mid-swap rate, around 15 basis points lower than the initial guidance.

The issue, aimed primarily at Socially Responsible Investors, was subscribed by over 100 investors, with a strong presence of foreign investors.

This new transaction confirms CDP’s desire to expand the forms of funding dedicated to activities with a positive social and environmental impact, intensifying its commitment to support local communities. In addition, as highlighted in the 2019 - 2021 Business Plan, CDP for the first time is strategically targeting  sustainability issues, by re-orienting its operating model towards  sustainable development themes and, in particular, those defined within the UN 2030 Agenda’s framework. This issue aims at providing resources for the financing of school buildings and urban redevelopment initiatives, with particular focus on the safety of buildings and local communities.

Specifically, the proceeds from the issue will be allocated to the construction, renovation, safety measures and earthquake-proofing for publicly-owned buildings dedicated to school education at all levels - from nursery school to university - and for urban redevelopment, including through initiatives aimed at improving living standards in areas subject to degradation, social hardship and poor safety and security conditions

The Social bond issue is inspired, in particular, by the SDGs 4 and 11 of the United Nations Sustainable Development Goals (UN SDGs): "Quality Education" and "Sustainable Cities and Communities".

The issue - which is part of the Debt Issuance Programme (DIP), the medium/long-term issuance programme by CDP amounting to 10 billion euro, listed on the Luxembourg Stock Exchange - has a duration of 7 years (maturity 21/03/2026), an annual coupon of 2.125% and a price of 99.288%.

In terms of investors’ type, 54% of the subscribers were banks, 25% investment funds and asset management companies, 15% insurance companies, and the remaining 6% central banks and other investors.

The bonds, which will be traded on the Luxembourg Stock Exchange, have the same medium/long-term rating as CDP, in line with that of the Italian Republic and equal to BBB (negative) for S&P, Baa3 (stable) for Moody's, BBB (negative) for Fitch and BBB+ (stable) for Scope.

Banca Akros, Banca IMI, Barclays, Bank of America Merrill Lynch, Mediobanca, MPS Capital Services, Société Générale, UBI Banca and UniCredit acted as Joint Lead Managers and Joint Bookrunners for the transaction.

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