FS Group issues EUR 650 million in green bonds
Signal
Ferrovie dello Stato Italiane issued EUR 650 million in green bonds maturing in June 2031 to finance sustainable rail projects.
Impact
positiveInvestors, particularly ESG-focused and SSA investors, will benefit from the increased availability of sustainable financing options, while FS Group strengthens its commitment to green initiatives in rail transport and infrastructure.
Ferrovie dello Stato Italiane (FS), Italy's state-owned railway group, has successfully issued EUR 650 million in green bonds, maturing in June 2031. This issuance is part of FS's broader debt strategy approved in March 2026, emphasizing sustainable financing to support investments in rail mobility and infrastructure.
The proceeds from these bonds will be allocated to eligible green projects in Italy, specifically targeting passenger rail transport and railway infrastructure. This aligns with the EU Taxonomy, which sets the standards for environmentally sustainable economic activities, particularly in transportation.
The bond features a coupon rate of 3.25%, with a final spread of 54.7 basis points above the mid-swap reference rate. The securities will be listed on Euronext Dublin and the electronic bond market operated by the Italian Stock Exchange (MOT).
Investor interest was robust, with demand reaching approximately 3.2 times the supply, marking one of the most successful outcomes for FS in recent bond offerings. The company received around 90 orders from investors, with a notable portion coming from international markets.
ESG investors, who prioritize environmental, social, and governance criteria, represented a significant share of the demand. Additionally, sovereign, supranational, and agency (SSA) investors accounted for about 38% of the total allocation, reflecting a diverse and high-quality order book.
This successful bond issuance not only enhances FS's financial position but also reinforces its commitment to sustainable development in the rail sector. By financing green projects, FS aims to improve its environmental footprint while meeting the growing demand for sustainable investment opportunities.
