Telecom Italia (TIM) has returned to the bond market after nearly two years, raising a total of EUR 1 billion with its inaugural green bond. In a statement, the company said the sale of the eight-year sustainability bond issue attracted over EUR 4 billion in demand and was priced at well below the secondary market of reference, with an annual coupon at 1.625 percent, the lowest ever rate. The transaction will also enable the operator to extend its average debt maturity and raise new funds in excess of the 2021 maturities.
TIM said the proceeds of the new issue will be used to continue transforming its copper network into fibre, which is expected to deliver significant energy efficiency in the long run. It added that the issue time marks the first time that an Italian company has pledged to invest part of the funds collected into projects with social value, as envisaged in the group’s Sustainability Financing Framework.
The operator is targeting carbon neutrality by 2030 and last year launched an initiative called TIM Green to reduce CO2 emissions via the marketing of eco-friendly products and services.
