CDP successfully launches a new Social Bond of 500 million euro

Press release

CDP successfully launches a new Social Bond of 500 million euro

The funds raised will be used to support the growth of enterprises and employment in southern Italy

Demand from over 90 investors reached about 2.5 billion euro

The transaction contributes to achieving the Sustainable Development Goals promoted by the United Nations

 

Rome, 23 June 2021 - Today, Cassa Depositi e Prestiti S.p.A. (CDP) launched a new Social Bond on the capital markets. The purpose of the Social Bond is to support businesses mainly located in southern Italy, fostering their growth and supporting social cohesion and higher levels of employment. The issuance, aimed at institutional investors, is for a total amount of 500 million euro with a maturity of 8 years.

With this transaction, CDP confirms its role as a leader in sustainable finance and first Italian issuer of social bonds, consolidating its position in the European market as well. The issuance is in line with CDP’s commitments to the Sustainable Development Goals promoted by the United Nations, with particular reference to SDGs 8 and 9 (respectively: “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” and “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”).

The new “CDP Social Bond 2021” – issued under the Debt Issuance Programme (DIP), CDP’s medium-long term issuance programme totalling 15 billion euro – is a fixed-rate, unsubordinated and unsecured bond with a nominal value of 500 million euro and an annual gross coupon of 0.75%.

The issuance was subscribed by more than 90 investors, about 60 of them foreign, underlining the strong interest for this type of issuance.

CDP Chief Executive Officer Dario Scannapieco stated: "This Social Bond reflects CDP’s growing commitment to sustainable finance, as well as its focus on maintaining employment levels and social cohesion. The healthy demand from institutional investors confirms the market’s confidence in CDP and also sends an important message with regard to Italy. Financial instruments such as this are designed to offer real support for the growth of the country’s productive fabric and represent an undeniable opportunity to stimulate the country’s recovery.”

The medium/long-term rating of the securities, whose admission to trading on the Luxembourg Stock Exchange was applied for, will be equal to BBB (stable) for S&P, BBB- (stable) for Fitch and BBB+ (negative) for Scope.

BNP Paribas, Citi, Credit Suisse, Goldman Sachs International, IMI-Intesa Sanpaolo, MPS Capital Services and UniCredit acted as Joint Lead Managers and Joint Bookrunners for the transaction.

 

 

 

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