Alperia debuts new BBB-rated corporate bond and raises 1,000.

Alperia: A New Entry in the Italian Corporate Bond Market

The landscape of small denomination Italian corporate bonds has seen some new additions recently.
Alongside MaireTecnimont 6.5% 2028 (XS2668070662), Carraro 7.75% 2028 (IT0006756438), and Alerion 6.75% 2029 (XS2717294487), another issuer has now entered the arena.

Alperia, the South Tyrolean energy service provider, stands out for its investment-grade rating (BBB from Fitch, with a stable outlook).
As a publicly owned company, the Province of Bolzano holds 46.38% of its share capital, while the municipalities of Bolzano and Merano each hold 21%, and the remaining 11.62% is held by the also publicly owned company Selfin.

Key Features of the Alperia Bond

Here are the key details summarized:

• Isin: IT0005595373
• Coupon: 4.75% (initially discussed at 4.5%)
• Type: Senior Unsecured Green
• Denomination: 1,000 EUR
• Subscription Start Date: from 21/5/2024 (until 17:30 on 31 May 2024, unless closed earlier).
  The operation will be carried out solely through banking channels
• Settlement Date: 5/6/2024
• Maturity Date: 5/6/2029, with the option of early redemption
• Listing: on the Mot
• Amount Issued: 250 million euros
• Coupon Payment: semi-annually

Strengths of the bond include the availability of a rating and the company’s public nature.
Despite being unsecured, the issue is backed by the general solvency of the company.
A weakness lies in the limited recognition of the issuer beyond the borders of South Tyrol.

It’s worth noting that there is another Alperia bond listed on the Italian Stock Exchange but with a denomination of 100,000 euros.
The Alperia Green 5.701% Lg28 Eur (Isin XS2641794081) has a current reference price of 105 EUR, although the last contract was executed at 99.85 EUR.
In practice, it sees limited trading.
The new bond, with a denomination of 1,000 euros, is expected to be much more liquid.