Press releases

The framework agreement, signed today by the parties, will reinforce AIMAG industrially and financially, with the aim of creating value through both synergies with the Hera Group and an investment plan with positive repercussions on the areas served. The agreement calls for a capital increase in kind in the coming months through the conferral to AIMAG by Hera of an approximately 45% stake in a Newco managing the integrated water service in the province of Modena, currently managed by Hera. Following the capital increase in kind, Hera’s stake in AIMAG will rise from the current 25% to roughly 41% and will acquire the industrial governance guaranteeing the achievement of the expected synergies, while the Public Shareholders will retain 51% of the AIMAG share capital.. sede_hera_110 (2).jpg centrata Today, the Boards of Directors of AIMAG S.p.A. and Hera S.p.A. agreed to sign a framework agreement that will introduce a new phase in the project for an industrial partnership between the two parties. The AIMAG Group, owned by 21 municipalities located in the provinces of Modena and Mantua, operates in the waste management, water cycle and energy sectors; in 2023, its consolidated turnover amounted to 400 million, with Ebitda at over 60 million and a net financial position at 210 million euro. AIMAG can rely on a customer base in the energy supply business coming to over 230,000, along with 121,000 POD in gas distribution, 72,000 citizens served and 2,000 km of networks in the integrated water cycle, and a waste collection and treatment business serving over 176,000 citizens in 12 municipalities. Their geographical proximity and a perfect match of the portfolio mix strengthens the synergic prospects of the industrial partnership between AIMAG and the Hera Group. The transaction will be subject to the usual conditions foreseen for this type of operation and to all communications and approvals by the competent authorities and bodies. The parties expect to complete the transaction within June 2025. The path includes, among other things, a capital increase in kind consisting of a conferral by Hera to AIMAG of an approximately 45% stake in a Newco to which the activities pertaining to the integrated water service in the province of Modena, currently owned by Hera S.p.A., will be transferred, concerning the management of 7,300 km of networks serving approximately 470,000 thousand citizens. As of now, a single hub for Modena’s water cycle will thus be formed, making possible synergies and integrated developments of the current systems and enabling greater investments and significant improvements in the resilience of the water network. The capital increase was defined by valuing AIMAG at roughly 7x its 2024 Ebitda and the newco at approximately 1.2x the RAB, and as a result Hera’s stake in AIMAG is expected to rise from 25% to approximately 41%, while the Public Shareholders will retain a majority with 51%. This reinforcement of AIMAG’s capital structure, along with the industrial and financial synergies obtained through Hera’s industrial governance, implying its consolidation line by line in the accounts, will enable an investment plan in the 2025-2028 period amounting to a total of over 250 million euro, for AIMAG and the Newco, to enhance the infrastructures of all portfolio activities, with consequent positive effects for all stakeholders. For the transaction, Hera was assisted by the Lazard team for the financial part and by the Grimaldi law firm for the legal part, while AIMAG made use of PwC as strategic and financial advisor for the operation, of Professor Marco Maria Mattei as advisor for the valuation and, for the legal part, of Professor Lawyer Tommaso Bonetti of the Bonetti law firm and of the BLF firm.   Download Press Release PR - AIMAG and Hera partnership strengthened.pdf 2025-01-22 19:00:00 sede_hera_110 (2).jpg

sede_hera_110 (2).jpg centrata Please note that the deed of execution dated 8 January 2025 relating to the issue by Hera S.p.A. of a 500 million euro Green Bond is available to the public at its registered office, on the website www.gruppohera.it, and on the authorised storage mechanism 1INFO (www.1Info.it). Download Press Release 20250116 Documentation relating to the issue of a bond published.pdf 2025-01-16 14:26:00 sede_hera_110 (2).jpg

Strong interest shown by international investors for the fourth “green” bond, maturing in 6.5 years, that will fund the Group’s strategic capex plan focused on sustainable and resilient management of the integrated water cycle, in the circular economy for regenerating resources and in the energy transition for developing renewables and energy efficiency. Subscriptions amounting to 5.5 times the amount offered were received. sede_hera_110-2.jpg centrata The Hera Group has started the year with a new milestone in sustainable finance. The first Italian company to issue a green bond in 2014, today Hera successfully launched its fourth green bond, covered by its “Euro Medium Term Note Programme” (EMTN) bond issue plan, recently updated and increased in its maximum amount. This bond respects the Group’s Green Financing Framework (GFF), prepared on the basis of ICMA principles, aligned with the criteria of the European Taxonomy and certified by an independent firm. The issue attracted significant interest from international investors, receiving orders for approximately 2.75 billion euro, almost 5.5 times the amount offered. With this issue, Hera has once again given the market an opportunity to finance the Group’s strategic projects aimed at the green transition and aligned with the Taxonomy, once again confirming itself internationally as a reference company for sustainable finance. “We are more than satisfied with the result of the placement, far exceeding expectations, of this fourth green bond: it makes our financial structure even greener and further strengthens the capital structure, making it even more resilient, as well as the credit profile of the multi-utility, in line with our Business Plan, which also calls for 2.5 billion euro in investments aligned with the European taxonomy, 98% of those eligible,” states Orazio Iacono, CEO of the Hera Group. “More specifically, this new issue provides additional stimulus for activities that create shared value, reducing the carbon footprint and regenerating resources, guaranteeing resilience in the services managed and thus making our businesses ever more sustainable. These commitments are already defined by the Group’s Green Financing Framework and the Climate Transition Plan with a Net Zero by 2050 target. This new green bond therefore confirms our goal of creating long-term value for our shareholders and our role as a multi-utility supporting the green transition for citizens, institutions and businesses.” The characteristics of the Group’s fourth green bond and the areas financed The fourth green bond of Hera Group (rated Baa2 with a stable outlook by Moody’s and BBB+/A-2 with a stable outlook by Standard & Poor’s), amounts to a total of 500 million euro, repayable in 6.5 years with a 3.250 % coupon and a 3.396% yield. The settlement date of the new issue has been scheduled for 15 January 2025. This green bond consists of senior, non-convertible, unsecured notes, intended for circulation among qualified investors. The new green bond is also expected to be assigned a rating in line with Hera’s. The transaction saw significant participation coming from international investors (in particular, Great Britain, France and Germany), mainly green and sustainable, confirming the interest towards the Group coming from abroad. The bond is expected to be listed, as of the issue date, on the regulated market of Euronext Dublin and, at the same time or at a later date, on the regulated market of the Luxembourg Stock Exchange and on the ExtraMOT PRO multilateral trading system managed by Borsa Italiana. The funds raised will be used to finance or refinance numerous projects, already ongoing or included in the Group’s Business Plan, selected on the basis of the Green Financing Framework (GFF), which work towards one or more of the goals on the UN’s 2030 Agenda for Sustainable Development (SDGs), subdivided into 3 areas: integrated water cycle (aligned to SDGs 6, 13 and 14): construction and extension of infrastructures for water collection, treatment and supply, with projects for wastewater collection and treatment; circular economy, pollution prevention and control (meeting SDGs 11, 12 and 13): advanced projects in plastics regeneration, anaerobic digestion of organic waste for the production of compost and biomethane, and waste collection and transport systems; energy efficiency and infrastructures (consistent with SDGs 7, 11 and 13): production of renewable electricity through photovoltaics and geothermal energy, development of district heating networks, installation, maintenance and repair of energy efficiency equipment and renewable energy technologies, including electricity transmission and distribution grids. To ensure that the funds are correctly and transparently allocated, Hera has set up a monitoring and reporting process, which also ensures that the amount actually dedicated to each intervention, along with evidence of the environmental performance achieved, will be published in the Group’s 2024 Sustainability Report. The partners in the transaction Hera’s green bond issue was coordinated by BNP Paribas, Credit Agricole CIB, Mediobanca, UniCredit, BBVA, Intesa Sanpaolo, Banco Santander, Banca AKROS, Deutsche Bank, BPER Banca, Montepaschi di Siena, Barclays and Caixabank as Joint Bookrunners. The law firm Legance assisted Hera, while the firm Linklaters provided support to the Joint Bookrunners. Hera Group new 500 million euro green bond.pdf 2025-01-08 18:15:00 sede_hera_110-2.jpg