Business
Italgas jumps after Snam launches 500 mln euro exchangeable bond linked to shares
Italgas jumps after Snam launches 500 mln euro exchangeable bond linked to shares
About this update from Snam S.p.a.
** Shares in Italy's Italgas MIL:IG rise as much as 10% after gas grid operator and shareholder Snam MIL:SRG announced a 500 million euro ($584.30 million) bonds offering exchangeable into shares of the gas distributor** Italgas shares rise as a "technical" effect of the operation, a Milan-based trader says** Snam said that the initial exchange price of its green bonds, due 2031, is expected to be between 22.5% and 27.5% above Italgas' reference share price** The reference share price is to be determined through the arithmetic average of Italgas shares' daily volume weighted average price between January 7 and January 9, it said** The operation allows Snam to maintain its current financial position in Italgas unchanged, Mediobanca Securities notes** It also means Snam will benefit from lower cost of financing, while at the same time valorizing the financial investment in Italgas** Italgas sits on top of the pan-European STOXX 600 TVC:SXXP index($1 = 0.8557 euros)