Terna — Capital/Financing Update 2020

Oct 28, 2020

TERNA: CREDIT FACILITY LINKED TO SUSTAINABLE DEVELOPMENT GOALS SIGNED FOR € 200 MILLION

The transaction confirms the central role that sustainability plays in Terna's strategy.

Rome, 28 October 2020 – Today Terna signed a bilateral ESG-linked Term Loan for a total amount of € 200 million with Intesa Sanpaolo S.p.A. as the Original Lender and Sustainability Coordinator.

The line of credit will have a term of 2 years and an interest rate linked to Terna's performance in relation to specific environmental, social and governance (ESG) indices.

Following the success of the Green Bond last July and the signing of two ESG linked Term Loans for € 200 million and € 100 million respectively, this new transaction reinforces the integration of the sustainability goals into the company's business strategy, which aims to combine sustainability and growth through the bonus/penalty mechanism linked to the achievement of ESG objectives, and is a testament to Terna's leadership role in sustainable finance.

The transaction allows Terna to count on a liquidity position adequate to its current rating and demonstrates the Group's strong commitment to the introduction of a model which increasingly aims to reinforce sustainability as a strategic lever for creating value for all its stakeholders.