International law firm Simmons & Simmons has advised Cap Holding S.p.A. (Cap Holding) in the issuance of a €105m sustainability-linked bond due 2037 (the “Notes”) and an associated 'shelf' facility under which allows the company to flexibly issue additional notes up to US$260 million (or euro equivalent) within the next three years.
The transaction represents the first US private Placement bond issue linked to a company’s reduction of its Scope 1, 2 and 3 greenhouse gas emissions.
Cap Holding is an Italian parent company which manages water assets – such as networks and plants – through its subsidiaries.
The Notes, which have a maturity of 14 years and offer 5.10% to investors on a semi-annual basis, are listed on the Irish regulated market. They are fully underwritten by Pricoa Private Capital – the private debt branch of global asset management firm PGIM.
Italian investment bank Mediobanca supported the company as Sole Arranger of the bond issue and Sole Structuring Advisor of the sustainability-linked financing framework.
Simmons advised Cap Holding on the Italian, UK and U.S. aspects of the transaction, with a cross-border team led by debt capital markets partners Paola Leocani and Charles Hawes, based in Milan and London respectively. The firm also supported on tax aspects, with a team led by financial markets partner Marco Palanca.
