Iren Places First Hybrid Bond for 500 Million Euros

Iren has placed its first hybrid subordinated perpetual bond issue, with a nominal value of 500 million euros. The issue, carried out in execution of the resolution of December 18th, 2024 of the company’s Board of Directors, received subscription requests almost 8 times compared to the amount offered, totalling orders for an amount equal to 4 billion euros. The settlement date of the issue was started from January 23rd, 2025.

The transaction, aimed at further strengthening the capital structure and supporting the financial flexibility of the group, is consistent with Iren’s growth strategy aimed at integrating EGEA, seizing new potential inorganic opportunities in addition to the implementation of the investments envisaged in the 2024-2030 Industrial Plan and confirms Iren’s commitment to maintaining the current investment grade rating, confirming the results already achieved with the BBB stable outlook rating for Standard & Poor’s and the BBB stable outlook rating for Fitch.

The bond, issued by Iren in a single tranche of 500 million euros, is non-convertible, subordinated, perpetual and due only in the event of dissolution or liquidation of the Company, as established in the related terms and conditions.

The annual fixed coupon of 4.5% will be paid by Iren until the first reset date of 23 April 2030

From that date, unless it has been fully repaid, the security will accrue interest equal to the reference five-year Euro Mid Swap rate increased by an initial margin of 221.2 basis points. The margin will increase by 25 basis points starting from 2035 and by a further 75 basis points from 2050 for a cumulative amount of 100 basis points. The fixed coupon is payable annually in arrears in the month of April, starting from April 2025. The issue price is set at 99.448% and the effective yield at the first reset date is equal to 4.625% per year.

The securities, intended for qualified investors, will be listed on the regulated market of the Irish Stock Exchange (Euronext Dublin). It is also expected that they will be assigned a rating of BB+/BB+ ( S&P’s/Fitch ) by the agencies and an equity content of 50%.

“We are pleased to announce that 2025 opens with the inaugural issuance of a €500 million hybrid bond. The market reception beyond expectations has led us to obtain an extraordinary result, with demand that exceeded supply by almost 8 times, totaling orders for an amount of over €4 billion, demonstrating the solidity and credibility of Iren on the market” stated Luca Dal Fabbro, Executive Chairman of Iren.

“This initiative is perfectly in line with our growth strategy, which includes the integration of EGEA and the implementation of the investments planned in our 2024-2030 Industrial Plan, allowing us to maintain adequate financial flexibility to seize any further development opportunities.”

The placement operation was managed by Barclays, BofA Securities, Citi, Goldman Sachs International, Intesa Sanpaolo (IMI CIB Division), Mediobanca, Société Générale Corporate & Investment Banking and UniCredit, acting as Joint Lead Managers.

“We are satisfied with the outcome of today’s transaction, which allows us to further strengthen our Group’s capital structure while also diversifying our investor base,” said Giovanni Gazza , CFO of Iren. “The issuance of the hybrid bond guarantees high financial flexibility to support the achievement of the economic and financial targets set in the Industrial Plan, and reflects Iren’s commitment to pursuing growth while respecting robust credit metrics in line with the current investment grade ratings.”

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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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