Prada S.p.A. has signed a new sustainability linked loan with UniCredit banking group.
This ESG linked loan is characterized by the application of a bonus mechanism that allows for a reduction in the interest rate upon the achievement of quantitative targets in the field of environmental sustainability. The attainment of these targets will be certified on an annual basis by an independent third party.
The five-year loan, worth EUR 90 million, is linked to the following KPIs:
- Regeneration and reconversion of production waste:
The Prada Group's recent investments in the industrial sector, especially in the most delicate phases of the production process, have led to reducing production waste in clothing, leather goods and footwear while effectively managing its collection and disposal.
The Group is now committed to transferring these waste materials to third parties for their introduction into other production cycles, either through their regeneration or conversion into fertilizers or energy.
- Increasing the share of self-produced energy
The investment plan for the construction of photovoltaic systems in the Group's industrial and corporate sites continues in order to ensure an increasing production of KWh/year in the period 2021-2025. A significant part of these interventions will be concentrated on the production and logistics sites in Levanella, Tuscany, with the aim of making the complex of buildings in this territory nearly self-sufficient from an energy point of view.
Alessandra Cozzani, Chief Financial Officer of Prada S.p.A., said: "Sustainability, as a value, is now universally recognized and shared, also by the financial industry. For us and for all companies, this results in an important stimulus to achieve increasingly ambitious goals towards a sustainable economy. We are proud to be among the first players in the luxury sector to have embarked on this path and to be considered a reference counterpart in the field today".
Alfredo Maria De Falco, UniCredit's Deputy Head of CIB and Head of CIB Italy, commented: "Sustainability is becoming a key competitive factor for businesses as it increasingly informs the choices of consumers and investors. UniCredit is amongst the leading banks in Europe with regard to financing solutions linked to ESG objectives, which can effectively support the transformation of companies' business models. We are therefore particularly pleased to support Made in Italy excellence such as Prada on its path towards a sustainable economy".
Milan, 10th February 2021
UniCredit Media Relations