Snam Raises $2B Via Net Zero-Linked Bond Offering

In a landmark move for sustainable finance, Italian energy infrastructure and services company Snam has successfully raised $2 billion through a multi-tranche sustainability-linked bond (SLB) issuance. The offering is the first of its kind globally to be tied directly to a company’s full value chain net zero targets, encompassing Scope 1, 2, and 3 greenhouse gas (GHG) emissions. This marks a bold step in climate-conscious corporate finance, reaffirming Snam’s commitment to long-term sustainability goals while also demonstrating strong investor confidence in its strategic direction.

The bond issuance, which drew an overwhelming response from the investment community, was five times oversubscribed, amassing an order book of approximately $10 billion. This is especially notable given the broader slowdown in sustainability-linked bond markets in recent quarters, driven largely by investor concerns around the rigor and transparency of climate targets associated with such instruments. Snam’s offering has defied this trend, largely due to the credibility and comprehensiveness of its climate strategy and newly updated Sustainable Finance Framework.

Published in April 2025, Snam’s Sustainable Finance Framework lays out an ambitious pathway for decarbonization across its operations and value chain. The framework ties the cost of debt servicing directly to clearly defined emissions reduction milestones. Specifically, the company aims to cut its Scope 1 and 2 emissions by 25% by the end of 2027, 50% by 2030, and 90% by 2050. Equally important is its commitment to reducing Scope 3 emissions—those generated indirectly by its value chain—by 35% by the end of 2032, and by 90% by 2050. The remaining 10% of emissions are planned to be addressed through carbon offsets. These targets align Snam with a full net zero objective by 2050, putting it at the forefront of climate action in the global energy sector.

The $2 billion offering was structured in three tranches: $750 million in bonds maturing in 2030, another $750 million maturing in 2035, and a third tranche of $500 million with a long-term maturity set for 2055. This tiered structure reflects both short- and long-term confidence in Snam’s financial stability and its strategic vision. Notably, the issuance also marks Snam’s debut in the U.S. capital markets—a significant milestone as it seeks to expand its investor base and solidify its presence on the global financial stage.

With this latest issuance, the share of sustainable finance within Snam’s total committed funding has increased to a striking 86%. This represents not only a financial evolution but a fundamental shift in the company’s operational philosophy—embedding sustainability as a core metric of financial and industrial performance.

Snam’s CEO, Agostino Scornajenchi, emphasized the strategic importance of the transaction, stating, “As Snam consolidates its position as a national and pan-European infrastructural player, strengthening our presence in global capital markets becomes essential to support our long-term growth ambitions. The strong interest shown by US fixed-income investors, together with the broad US investor base in our shareholding, reaffirms the high confidence in Snam’s sustainable strategy, financial soundness and our long-term industrial vision.”

The bond issuance is likely to set a new benchmark in the sustainability-linked debt space, not only for its scale but for its integration of full-scope climate targets. By committing to a robust and verifiable pathway to net zero, Snam is addressing both investor demands for climate accountability and the growing regulatory expectations on corporate decarbonization.

This move also underscores a broader trend within global capital markets where climate-conscious financing is increasingly linked to concrete, measurable environmental outcomes. As concerns about greenwashing and the integrity of ESG commitments rise, investors are gravitating towards issuers who can provide transparency, accountability, and a clear trajectory toward meaningful impact. Snam’s offering exemplifies this next generation of sustainable finance instruments—ones that not only raise capital but also drive systemic change in high-emission industries.

In conclusion, Snam’s $2 billion SLB issuance is more than just a financial transaction—it’s a strategic leap toward a decarbonized future. By tying investor returns to the success of its emissions reduction agenda, Snam is aligning financial incentives with planetary needs, making it a pioneer in truly accountable sustainable finance.