Hera Group celebrates its first European Green Bond EU on Borsa Italiana
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Hera Group celebrates its first European Green Bond EU on Borsa Italiana
Issued on 26 May, orders were received for 7 times the amount offered. With a 6-year maturity, it will finance strategic projects aligned with the European Taxonomy.
Hera Group today celebrated on Borsa Italiana - Euronext Group, in the prestigious setting of Palazzo Mezzanotte in Milan, the listing of its first European Green Bond (EuGB), with the traditional “ring the bell” ceremony that marks occasions such as this.
The bond issue, completed on 26 May, amounted to 500 million euro, repayable over 6 years with a 3.50% coupon and a yield of 3.574%. It attracted significant interest from international investors, receiving orders for approximately 3.6 billion euro, almost 7 times the amount offered.
The transaction saw significant participation from international investors, particularly from the United Kingdom, France and Germany, with a strong share of green and sustainable investors, confirming the interest in the Group also beyond Italy.
Through this transaction, Hera Group has once again offered the market the opportunity to finance strategic projects aimed at the green transition and aligned with the European Taxonomy. In particular, the proceeds will be allocated to three main areas: sustainable water and wastewater management; circular economy, pollution prevention and control; energy efficiency and energy infrastructure.
Maurizio Pastore, Head of Debt Listing at Euronext Group, stated: “The success of Hera’s issue, with its first European Green Bond attracting considerable demand from institutional investors, confirms the bond market’s ability to channel capital and support virtuous companies in pursuing ESG objectives. As Euronext Group, we actively promote the adoption of sustainable finance within business strategies, supporting this activity with an increasingly integrated and efficient infrastructure for issuers and market operators.”
“This transaction reflects our strong focus on sustainable finance instruments, in line with our strategy and our purpose: we were the first Italian company to issue a green bond in 2014, and this is our fifth green issue in 12 years, in addition to two SLBs, Sustainable Bonds,” said Massimo Vai, Chief Financial Officer of Hera Group. “This further confirms our position as a benchmark company in sustainable finance, including at international level. This synergy between our Group, Borsa Italiana, banks and investors will enable the financing of significant projects for the benefit of citizens and served areas, further improving the resilience of services and generating the shared value that allows us to continue along a growth path in which economic development and environmental and social sustainability are not separate dimensions, but part of a single strategic vision.”
The issue of Hera Group’s European Green Bond (EuGB) was coordinated by BNP Paribas, Crédit Agricole CIB, Mediobanca, UniCredit, BBVA, Intesa Sanpaolo – IMI CIB Division, Banco Santander, Banca Akros, Deutsche Bank, BPER Banca, Montepaschi di Siena, Barclays, CaixaBank and Goldman Sachs as Joint Bookrunners. Legance acted as legal advisor to Hera, while Linklaters advised the Joint Bookrunners.
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The Group's continued inclusion in the index confirms the strength of its ESG profile, standing above the Utilities and Multiutilities sector average in key areas including Climate Change, Labour Standards, Governance and Anti-Corruption.
Hera confirmed in the FTSE4Good Index Series for the seventh consecutive year
Hera stock has been confirmed, for the seventh consecutive year, as a constituent of the FTSE4Good Index Series, FTSE Russell's sustainability index that includes companies worldwide recognised for their commitment to responsible and sustainable business practices.
The 2026 assessment confirms the Group's inclusion in the index with a score well above the utilities sector average, reflecting the effectiveness of Hera’s long-standing commitment to environmental, social and governance excellence.
Among the areas in which Hera achieved particularly strong performance are climate change management, labour standards, the robustness of its corporate governance framework and its anti-corruption practices. These are key pillars of the Group's strategy, as demonstrated by its Climate Transition Plan, which targets net-zero emissions by 2050, and by the signing of the Good Work Pact with trade unions.
Inclusion in the FTSE4Good Index Series therefore represents a further recognition of Hera's sustainable growth journey, underpinned by a business model focused on creating shared value for local communities, customers, employees and shareholders. Shared value creation accounts for 77% of the investments envisaged under the Group's Business Plan, with the objective of increasing shared value EBITDA to 68% of total EBITDA by 2029, while delivering a structural Total Shareholders' Return averaging 10% per year, while maintaining a low-risk profile.
FTSE4Good Index Series
The FTSE4Good Index Series was created by FTSE Russell to support investment in companies that meet globally recognised environmental, social and governance standards. It serves as an important benchmark for the development of sustainable investment portfolios and indices.
Companies included in the FTSE4Good Index meet rigorous ESG criteria and are therefore considered to be better positioned to capture the benefits associated with responsible business conduct.