Equity investment in Trans Austria Gasleitung GmbH (TAG)
On 18 March 2014, Snam signed a memorandum of understanding with Cassa Depositi e Prestiti S.p.A. which defines the negotiation process for the purchase of CDP’s stake in TAG GmbH (owned by CDP GAS S.r.l.), the company holding transport rights for the pipeline connecting the Slovakian-Austrian border with the entry-point of Tarvisio in Italy. The system is made up of 3 pipelines, each 380 km long (for an overall length of 1,140 km) and 5 compression stations, with a transport capacity of around 48 billion cubic meters of gas.
Development of the strategic partnership with Fluxys begun in 2012
At the end of March 2014, Snam signed a memorandum of understanding with Fluxys to further develop the strategic partnership signed between the two companies in 2012. The agreement intends to pursue opportunities for growth via projects aimed at improving the flexibility and security of gas supplies using infrastructure in Europe. The project is aimed at the creation of a jointly owned company that combines the international assets of Fluxys and Snam situated in the South-North and East-West European energy corridors, with the exception of the respective domestic markets of the two companies (Belgium and Italy), so as to be able to play a key role as a facilitator of greater flexibility and liquidity in the market thanks to the better interconnection of European gas networks.
Renewal of Euro Medium Term Notes (EMTN) programme to issue bonds
On 23 June 2014, the Board of Directors of Snam resolved to renew the EMTN programme for a maximum value of €12 billion6. The renewal of the programme allows for the issue, by 30 June 2015, of bonds worth up to €2 billion, to be placed with institutional investors operating mainly in Europe.
Renegotiation of syndicated credit lines
With effect from 25 July 2014, Snam has signed agreements with its creditor banks in order to negotiate new and better conditions, in terms of both pricing and term, for the syndicated loan taken out in July 2012. The syndicated loan, worth €3.2 billion in total, consists of a floating-rate revolving credit line worth €2 billion, with a term of three years maturing in 2017, and a floating-rate liquidity line worth €1.2 billion, with a term of five years maturing in 2019.
Group captive insurance – Gasrule Insurance Ltd
With a view to ensuring more effective and efficient risk management for the Group, following the authorisation from the Central Bank of Ireland, the captive insurance company Gasrule Insurance Ltd has been in operation since July 2014. The company is headquartered in Dublin and is wholly owned by Snam. The corporate purpose of Gasrule Insurance Ltd is to cover the Group’s industrial risks.
On 10 July 2014, Snam paid a total of €20 million by way of a capital increase. As at that date, the Company’s share capital consisted of 20,000,000 shares, each with a par value of €1.
6 On 11 June 2013, as part of the previous renewal of the EMTN programme, the Board of Directors of Snam resolved to issue bonds worth up to €10 billion in total, to be issued in one or more tranches by 30 June 2014. As at that date, bonds worth a total of around €9.95 billion had been issued.