Eni has successfully placed two bond issues in US dollars. These are two fixed rate issues with a duration of 10 and thirty years. The total nominal value is 3 billion dollars.
Eni made this known, explaining that the offer met with high interest from the market and reached a total demand of around 15 billion dollars from around 240 investors. The proceeds, it was communicated, will be used to finance Eni’s ordinary financial needs.
Eni places two new bonds
In a note dated May 11, the Eni group learned of its intention to place two new fixed rate bond issues in US dollars with a duration of 10 and 30 years.
The issue of the bonds took place after the resolution of the Board of Directors on 2 April. It also states that the proceeds will be used for Eni’s general needs.
The loans were intended for institutional investors and were placed compatible with market conditions.
For the issues, we made use of a syndicate of banks made up of:
Barclays, BofA Securities, Citigroup, Goldman Sachs International, HSBC, IMI – Intesa Sanpaolo, JP Morgan, Morgan Stanley, MUFG, Santander, SMBC Nikko and Wells Fargo Securities.
The success of the emissions
After the issues, Eni confirmed that it had successfully re-entered the American market by pricing the two 10 and 30 year fixed rate dollar bond issues for a total nominal value of 3 billion US dollars.
We read that the offer:
met with high interest from the market, reaching an overall demand of approximately 15 billion US dollars, coming from approximately 240 professional investors for each tranche.
The two are distinguished:
- the 10-year bond (maturing May 18, 2036) was placed for 1.5 billion dollars at a re-offer price of 99.172% (it will pay an annual coupon of 5.250%);
- the 30-year bond (maturity May 18, 2056) was placed for $1.5 billion at a re-offer price of 98.105% (it will pay an annual coupon of 6.000%).
How to purchase them after issue
The bonds, issued for the first time on the primary market, will find space in the secondary market, where already existing financial instruments are traded.
The price will be formed depending on supply and demand. One of the main ones in Italy is the Mot, the electronic bond market managed by the Italian Stock Exchange. Large and small investors and investors can participate.
Eni and MSC Cruises
After the success of the emissions, Eni also announces the completion of the experimental campaign for the use of HVO (Hydrotreated Vegetable Oil) diesel. Together with MSC Cruises they conducted a test with one of the engines of the MSC Opera ship, which was fueled for approximately 2000 hours with pure HVO.
The test demonstrated that advanced diesel biofuel can be a solution that can be immediately applied to marine engines and without the need for technological updates, guaranteeing performance in line with traditional ones based on fossil fuels.
Furthermore, from a technical point of view, from what Eni announces, a reduction in both NOx (-16%) and particulate emissions has been recorded, as well as a significant decrease in GHG (greenhouse gas) emissions equal to approximately 80% less compared to the use of traditional fuel.
