Snam’s return shows transition bonds still have fans

Pasini, Alessandra (Snam) from co for use 575x375
By Jon Hay, Mike Turner
12 Jun 2020

Transition bonds were the hot idea of 2019 in green finance circles, appearing to offer a way to expand themed bonds to a much wider range of issuers. But the product has struggled to gain momentum. This week’s deal from Snam, the Italian gas grid company, confirmed that it has an audience, among both issuers and investors.

Transition bonds are labelled bonds, similar to green bonds, but financing companies “which are ‘brown' today but have the ambition to transition to green in future”, in the words of Axa Investment Managers, which published an influential white paper on the subject in June 2019.

On Wednesday, Snam ...

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