SETTING SUSTAINABLE FASHION TRENDS
Thursday 18 February 2021
Innovative financing from UniCredit is helping the fashion industry become more sustainable.
UniCredit confirms its role amongst the leading banks in Europe with regard to financing solutions linked to ESG objectives. Another recent example sees UniCredit successfully supporting Tod’s with a sustainability-linked loan and the related hedging interest rate exposure.
In January, UniCredit acted as lender and hedging counterparty for a €500 million pool sustainability-linked loan agreement for Tod’s, the Italian luxury goods group. Specifically, UniCredit acted as Bookrunner, Mandated Lead Arranger and Original Lender.
This transaction is part of Tod’s wider strategy to promote the spread of social and environmental sustainability standards.
The pool sustainability-linked financing has a five-year maturity and is structured as a term facility of €250 million and a revolving credit facility of additional €250 million. The term facility contains a ‘bonus’ mechanism linked to achieving identified environmental, social and governance KPIs.
The company also hedged the interest rate exposure related to the sustainability-linked term facility through a Sustainability-linked Interest Rate Swap (IRS). The Sustainability-linked IRS contains a rewarding mechanism similar to the one contained in the term facility and will see Tod’s benefit from a decrease in the fixed rate paid if the sustainability KPIs are met.
Paolo Gilardi, Head of Corporate Solutions Group, Italy
“UniCredit, with its extensive expertise in corporate risk solutions, was very pleased to support Tod’s in shaping a risk management strategy linked to sustainability.”