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Allen & Overy advises on liability management and first sustainability-linked bond by Mundys

Mundys has issued its inaugural Sustainability-Linked Bond for a nominal value of EUR750 million and maturity of five years, intended for qualified investors. The bond was listed on the regulated market of Euronext Dublin and issued under Mundys existing Euro Medium Term Note Programme supplemented on 27 December 2023 and based on the recently updated Sustainability-Linked Financing Framework.

The new issuance enables Mundys to start reducing the near-term debt maturities, including notes expiring in February 2025 currently subject to the partial tender offer announced on 15 January 2024.

The bond pays a fixed annual coupon of 4.75%. There is a Premium Payment for maximum cumulative 0,75% if Mundys does not satisfy the KPI 1 Condition or the KPI 2 Condition, in accordance with the Conditions of the EMTN Programme. Both KPIs measure progress of the decarbonization roadmap of the group towards 2030.

On January 25 there was the settlement of its invitation to the holders of the outstanding “EUR750,000,000 1.625 per cent. Notes due 3 February 2025” issued by the Company (formerly Atlantia S.p.A.) to tender their Notes for purchase by the Company for cash (the “Offer”) for up to a maximum aggregate principal amount of EUR150 million. The Offer was made as part of the Company’s pro-active management of its liabilities.

Allen & Overy advised the financial institutions on both the transactions - BNP Paribas, Crédit Agricole CIB, Intesa Sanpaolo (Divisione IMI CIB) and Mediobanca Global Coordinators and bookrunners together with Banca Akros BBVA, BPER, HSBC, Mizuho, Natixis, Société Générale and UniCredit, and Crédit Agricole CIB as Sustainability Structuring Coordinator - in relation to the Sustainability-Linked bond and BNP Paribas, Crédit Agricole CIB and UniCredit as dealer manager in relation to the tender offer.

The A&O team was led by partners Cristiano Tommasi and Craig Byrne, supported by senior associate Sarah Capella, associate Alessandro Negri and trainee Francesco Laurenti. Counsel Elia Ferdinando Clarizia advised on tax-related matters.