Terna — Capital/Financing Update 2020

Aug 6, 2020

TERNA: CREDIT FACILITY LINKED TO SUSTAINABLE DEVELOPMENT GOALS SIGNED FOR € 100 MILLION

The transaction takes place after the issue of the Green Bond for € 500 million and a few days after the signing of an ESG Linked Term Loan for € 200 million

Rome, 6 August 2020 – Today Terna signed a bilateral ESG-linked Term Loan for a total amount of € 100 million with Mediobanca as the Original Lender and Sustainability Coordinator.

The line of credit will have a term of 3 years and an interest rate indexed to the EURIBOR plus a margin linked to Terna's performance in relation to specific environmental, social and governance (ESG) indices.

Following the success of the Green Bond in July, which had the lowest interest rate (0.78%) among Italian companies both for green bonds and for issues over 10 years, and the signing of an ESG linked Term Loan of € 200 million, 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.