BBVA and Snam sign a new green loan

BBVA and Snam successfully signed a new Eur 200 million green term loan which will contribute to the acceleration of Snam’s energy transition investments and will consolidate the company’s long-term goal of maintaining approximately 80% of its financial instruments sustainable. The transaction represents the largest bilateral green loan ever signed for Snam and strengthens the relationship between the company and BBVA, both continuously committed in achieving their respective sustainability objectives.

The proceeds of the facility will be used to fund carbon and emission reduction projects, renewable energy projects, energy efficiency projects, green development projects and retrofit of the gas transmission network. These investments, which are aligned with the requirements of the EU taxonomy, will have a positive impact on several Sustainable Development Goals fundamental to Snam’s operations: SDG7, affordable and clean energy; SDG9, industry, innovation and infrastructure; SDG11, sustainable cities and communities; and SDG13, climate action.

In 2018 Snam started the process of aligning its financial strategy with its sustainability targets and made sustainable finance become one of the pillars of its development strategy and investments in the energy transition. In that moment BBVA assisted Snam as sustainability coordinator in its EUR 3.2 billion sustainability-linked revolving credit facility, incorporating environmental, social and governance (ESG) objectives in its core bank facility. In 2020, BBVA was once again appointed coordinator for the extension of the sustainability-linked loan closed in 2018. 

This new Eur 200 million green term loan highlights, once again, BBVA’s close relationship with Snam and the willingness of the bank to help the group reach its sustainability targets. 

Marisa Di Lullo, Head of Corporate Lending Italy, said: “In a challenging energy context, we strongly believe that access to funding is a critical factor in dictating the pace of energy transition and Snam is a key player in the race to net zero. That is why we have been very keen to show support for the group in its transition through this new green loan. After our close collaboration in the group’s first sustainability-linked RCF in 2018 and its extension in 2020, we are particularly proud to have found a new way to work together to meet our common commitment to a cleaner world.”

Luca Passa, CFO of Snam, said: “Following the recent issuances of the Exchangeable Bond and the EU Taxonomy-Aligned Transition Bond, the green term loan signed with BBVA provides a further instrument of our sustainable finance toolbox, which is in line with Snam’s commitment to give sustainable finance a key role in its strategy which includes, among others, a carbon neutrality target by 2040 and the further development of its energy transition businesses. This transaction contributes to exceed Snam’s target to obtain 80% of its funding through sustainable finance instruments.”

Snam is the leading European operator in natural gas transport, with a network of around 38,000 km in Italy and abroad. The company also deals with storage, of which it holds 17.1% of the European capacity, and regasification, with 6.5 billion cubic meters of gas that will rise to 16.6 billion cubic meters by 2024 due to the installation of regasification plants in Piombino and Ravenna. Snam is among the leading Italian listed companies by market capitalization.