Generali's first 'sustainability bond' attracts strong interest from investors

Italian insurer  Generali has placed its first "sustainability bond" - a €500 million Tier 2 bond due in June 2032 as part of its Sustainability Bond Framework.

The launch follows the placement of two green bonds in 2020.

The net of proceeds from the notes will be used to finance/refinance eligible sustainability projects.

Generali said the issuance attracted strong interest from international investors, which accounted for approximately 93 percent of allocated orders. About 36 percent of the bond has been allocated to French and Benelux investors, 29 percent to German and Swiss accounts and approximately 14 percent to Italian and Spanish investors.

During the book building process, the notes attracted an order book of €2.2 billion from about 180 highly diversified international institutional investors, including a significant representation of funds with sustainable/SRI mandates.

"I am pleased by the strong reception of our first Sustainability Bond, which confirms our commitment to sustainability and to support the development of the market for green, social and sustainability bonds in Europe," said Generali Group CFO Cristiano Borean.

He added: “This transaction will further extend the average maturity of our debt, consistent with our proactive approach in shaping the debt maturity profile and will provide the opportunity for Generali to finance green and social projects. Moreover, this will lead to a further reduction in the annual gross interest expense considering our outstanding debt profile. Sustainability is an enabler of the Generali 2021 strategy."

BNP Paribas, Goldman Sachs International (B&D), HSBC, Mediobanca, Santander and UniCredit acted as joint lead managers and bookrunners for the placement.

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