Hera Group: European Green Bond (“EuGB”) of 500 million euros
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Hera Group: European Green Bond (“EuGB”) of 500 million euros
Strong interest from international investors in Hera’s first European Green Bond (EuGB) with a 6-year maturity, which will finance strategic projects of the multi-utility aligned with the EU Taxonomy. Orders received amouned to 7 times the offered amount.
The Hera Group, the first Italian company to issue a green bond in 2014, continues today its commitment to sustainable finance with the launch of its first European Green Bond (“EuGB”), under its “Euro Medium Term Note Programme” (EMTN). This bond issuance – in line with its European Green Bond Factsheet, published in the dedicated section of the Group’s website (https://eng.gruppohera.it/group_eng/investor-relations/debt-and-rating/green-financing-framework-e-opinion), together with the relevant Pre-Issuance Review, attracted significant interest from international investors, receiving orders for approximately 3.6 billion euros, nearly 7 times the offered amount.
With this issuance, which corresponds to the fifth green issuance overall considering all those carried out by the multi-utility over the last 12 years, the Hera Group has once again offered the market the opportunity to finance strategic projects aimed at the green transition and aligned with the EU Taxonomy, reaffirming its position as a benchmark company for sustainable finance, also at an international level.
“The issuance of our first European Green Bond represents a further concrete step in the Hera Group’s sustainability journey, confirming our commitment towards carbon neutrality and the development of the circular economy” – states Orazio Iacono, Chief Executive Officer of the Hera Group. “This new sustainable finance instrument allows us to fund investments fully aligned with the EU Taxonomy, accelerating strategic projects for the energy and environmental transition, from the reduction of greenhouse gas emissions to the increase in resource recovery and regeneration. This is a significant contribution to our business plan and to the Net Zero 2050 target, confirming our Group’s strategy, where business growth, value creation, and sustainable development are closely interconnected.”.
Characteristics of the Group’s European Green Bond (“EuGB”) and funded areas
The Hera Group’s first European Green Bond (“EuGB”) (rated Baa1 with Stable Outlook by Moody’s and BBB+/A-2 with Stable Outlook by Standard & Poor’s), amounts to a total of 500 million euros, repayable in 6 years with a coupon of 3.50% and a yield of 3.574%. The settlement date of the new issuance is expected on 4 June 2026.
The EuGB is represented by senior, non-convertible, unsecured notes, intended for circulation among qualified investors and governed by English law. Furthermore, the European Green Bond (EuGB) is expected to be assigned a rating in line with that of Hera.
The transaction saw significant participation from international investors (in particular, United Kingdom, France, Germany). Substantially all of investors were green and sustainable, confirming the interest in the Group also beyond national borders.
The European Green Bond is expected to be listed on the regulated market of Euronext Dublin from the issue date, as well as on the regulated markets of Euronext Milan and the Luxembourg Stock Exchange.
In accordance with the provisions of Regulation (EU) 2023/2631, the proceeds from the issuance are expected to finance or refinance the projects indicated in the Hera Group’s European Green Bond Factsheet, fully aligned with the EU Taxonomy.
In particular, the use of proceeds will cover three main areas:
- Sustainable management of water resources and wastewater: including construction, expansion and management of water collection, treatment and supply systems (economic activity 5.1 of the EU Taxonomy), as well as construction, expansion and management of wastewater collection and treatment systems (economic activity 5.3 of the EU Taxonomy);
- Circular economy, pollution prevention and control: including initiatives for the collection and transport of non-hazardous waste in source-segregated fractions (economic activity 5.5 of the EU Taxonomy);
- Energy efficiency and energy infrastructure: including (i) the generation of electricity using solar photovoltaic technology, (ii) the transmission and distribution of electricity, and (iii) installation, maintenance and repair of energy efficiency devices (economic activities 4.1, 4.9 and 7.3 of the EU Taxonomy).
To ensure the correct and transparent allocation of funds, Hera has adopted a monitoring and reporting process that provides for the publication of relevant information through a “Green Bond Report” which will include the “Allocation Reporting and the Impact Reporting”.
Transaction partners
The issuance of the Hera Group’s first 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. The law firm Legance assisted Hera, while the law firm Linklaters supported the Joint Bookrunners.
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The multi-utility tops the ranking, marking its sixth consecutive year on the podium, the only Italian company to achieve this result. The recognition rewards the credibility and consistency with which the Group integrates ESG factors into its strategy, governance and corporate culture.
Hera Group ranked first in the 2026 ESG Identity Corporate Index, developed by ET.Group to measure the extent to which ESG factors are integrated into companies’ strategies and decision-making processes. The results of the eleventh edition were presented today in Milan at the ESG Business Conference.
The Group’s growth, together with the progressive evolution and increasing maturity of its ESG model, has gone hand in hand with continuous advances in governance, enabling the multi-utility to rank among the Top 10 for 9 consecutive years and on the podium for six years in a row.
A more selective assessment focused on ESG credibilityThe recognition is even more significant as it is the outcome of a rigorous assessment process carried out against a benchmark that continues to rise. The 2026 edition included a record 109 companies, all demonstrating increasingly advanced levels of ESG maturity.
The assessment itself has also become more demanding, shifting the focus from disclosure alone to companies’ ability to demonstrate the effective integration of ESG factors into strategy, decision-making processes and corporate culture. The analysis centres on the development of a robust and coherent ESG strategy geared towards value creation, transparent reporting of results, and the ability to anticipate and manage risks.
For Hera Group, particular emphasis was placed on:
- governance as an enabler, supported by the active involvement of dedicated governance bodies;
- the integration of ESG targets into remuneration policies and long-term strategies;
- the ability to foster a cross-functional ESG culture involving all business functions and the entire value chain.
Hera Group builds its ESG narrative on its strategy, its commitments and its ability to translate them into tangible results. Over more than twenty years, the multi-utility has combined sustained economic growth with the evolution of its governance towards increasingly demanding targets, clear accountability and measurable performance. The credibility of the Group’s commitments rests on a consistent track record of delivery, as demonstrated by significant investments, completed projects and reported impacts. The same rigour underpins investment in people development through skills, inclusion and professional growth, as well as incentive systems that embed sustainability targets.
For Hera Group, ESG is therefore the practical framework through which the company governs, grows and creates value over time.