Green Bond Fact Sheet
Ferrovie dello Stato Italiane

Date: 08/07/2019

Issue date: 05-07-2019 Maturity date: 09-07-2026 Tenor: 7 years
Issuer Name

Ferrovie dello StatoItaliane

Amount Issued

EUR700m/USD788m

Country of risk

Italy

CBI Database

Included

Issuer Type1

Government-backedentity

Bond TypeUse of Proceeds

Green Bond Framework

Link to Framework

Second party opinion

Second Party Opinion

Certification Standard

Climate Bonds Standard
V2.1, as well as Sector
Criteria for:

Assurance report

Pre-Issuance Verification

Sustainalytics

Green bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☐ Electric vehicles☐ Low emission vehicles☐ Bus rapid transit☒ Passenger trains☐ Urban rail

☒ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewater treatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience• Low Carbon Transport
Certification Verifier
Use of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Land use &agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose & paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

FS will provide annual public reports on the green bond. The reports will include the numbersof trains financed by the proceeds, and quantitative impact indicators such as the estimatedelectricity saved, and the corresponding amount of avoided CO 2 emissions. The reports will beincluded in the annual sustainability reports.
FS is a state-owned company, which owns and manages the national rail infrastructure acrossItaly. It wholly owns Trenitalia, which is the national operator of both regional and long distance trains. FS estimates that it operates 9000 trains per day and carries 600 million
passengers per year, as well as 23 billion ton-km of freight traffic.
In 2017, FS estimated that its rail network consumed an amount of electricity that is similar tothe consumption of an Italian province, Umbria, or 1.3 million average UK detached houses. FS
notes that they are one of the largest consumers of electricity in Italy and has a strategy toreduce this consumption. Part of this strategy includes replacing its trains with more energy
efficient models.
In December 2017, FS issued their first green bond of EUR 600m. Around half of the orders
came from institutional investors with sustainability commitments. The issuance received
much interest and achieved a coupon of 0.875%, which was the lowest coupon ever obtainedby FS.

Firsts, records andcertifications
Proceeds description

This is the first Certified Climate Bond to be issued in Italy. This is the second national rail
network in Europe to issue Certified Climate Bonds.
Within 6 months of the bond issuance, FS will allocate all the proceeds of the bond to a loan
issued to Trenitalia, which will be used to procure new passenger and freight trains. The newmodels of passenger trains are: Pop, Rock, and ETR 1000.
Pop and Rock are 3 or 4 car double deck regional trains and up to 600 may be procured, mainly
to replace older rolling stock. Pop is manufactured by Alstom, whilst Rock is built by Hitachi.
They have capacities of 1400 passengers and may travel at speeds of up to 160km/h. They will
have modern features to improve passenger comfort and will be up to 30% more energy
efficient compared to the trains which they replace. The new trains began entering service in
2019, and the replacement program will take 5 years.
The ETR 1000 is the fastest long-distance train on the Italy rail network and is one of thefastest in Europe. They operate at speeds of up to 300 km/h. The trains are manufactured byHitachi and Bombardier. They began service in 2015 and have passenger capacities ofapproximately 500. They emit 20.5% less CO2 than the ETR 500 trains which they replaced.
The new freight trains to be procured as part of this program include the E494, which is thenewest model of TRAXX trains. These are more energy efficient than the previous models.

FS sees that this upgrade of its electric train fleet encourages passengers and freight to becarried on its network. Therefore, CO2 emissions from road transport may be reduced.

Climate Bonds view

A massive modal shift of passengers and freight from fossil fuel powered individual vehicles toa fully electrified rail network is a very essential part of the low carbon transition.

Underwriters

Banca IMI (Gruppo Intesa Sanpaolo), BNP Paribas, CITI, Crédit Agricole CIB, UniCredit acted as
Joint Lead Managers and Joint Bookrunners.

Deal comments
Credit Rating

BBB (S&P, Fitch)

Pricing summary

Coupon at 1.125%, with a final spread set at mid swap +128 basis points; equivalent to 16 basis
points under the BTP duration equivalent, at the books’ closing.

Investors summary

The robust demand exceeded the offer by 3.5 times, with total orders of around 2.5 billion
euro from 156 investors, of which 65% from abroad, largely from France (36%),
Germany/Austria (8%) and UK/Ireland (7%).
Around 47% of the orders came from SRI investors. The main investors are fund managers andinsurance companies (60% of the final allocation).

1

Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign