Intesa Sanpaolo, Unicredit and more. Here are the banks that finance Leonardo on green and sustainability
Leonardo has signed a new revolving credit line, the first ESG-linked, of 2.4 billion with a syndicate of international and national banks
The aerospace and defense giant of Piazza Monte Grappa also focuses on sustainable finance.
Leonardo has signed a new revolving credit line, the first linked to ESG (environmental, social and governance) objectives, with a syndicate of 26 international and national banks.
The Esg-linked Revolving Credit Facility (“Esg-Rcf”) line of credit is equal to 2.4 billion euros. It is divided into a tranche of € 1.8 billion with a duration of 5 years and a tranche of € 600 million with a duration of 3 years.
The new credit line replaces the two existing Revolving Credit Facilities, reducing the overall cost of funding available for the Group's financial needs and extending the duration until 2026, a note from the former Finmccanica explained last week.
"The signing of the Esg-linked credit line confirms our commitment to sustainability, an integral part of Leonardo's Industrial Plan and incentive system, and is a further step forward in the Group's disciplined financial strategy", commented the CEO by Leonardo Alessandro Profumo.
The new RCF was subscribed by 26 banks, resulting in an oversubscription with total commissions of over € 4.4 billion. This is 185% of the requested amount, highlights Profumo al Sole 24 Ore .
“Leonardo has not disclosed the interest rates he will pay. They will not be fixed. "We have obtained very good rates which will drop when we reach the objectives," Profumo told Il Sole 24 Ore . “There is a bonus-malus system. If we reach the ESG targets, the spread reduces and rates go down, if we don't reach them they go up. From this operation we have a double benefit, the smaller size of the credit line and the lower rates. This will allow us to reduce financial charges and maintain a significant source of liquidity ».
IN LINE WITH THE SUSTAINABILITY STRATEGY OF THE LEONARDO INDUSTRIAL PLAN
In line with the sustainability strategy underlying the Business Plan and with Leonardo's incentive system, the credit line is linked for the first time to specific ESG indicators, including the reduction of CO2 emissions through eco – efficiency of industrial processes and the promotion of female employment with degrees in STEM disciplines.
The aforementioned ESG parameters also contribute to achieving the Sustainable Development Goals (SDGs) which are the basis for approximately 50% of the Group's investments.
The achievement of the objectives linked to the ESG indicators will also activate a mechanism for adjusting the margin applied to the credit line.
“The favorable market conditions led us to sign this credit line in order to further reduce financial charges and maintain a significant source of liquidity, also in line with the expectations of the financial market and credit rating agencies. Linking RCF's margin to the achievement of ESG objectives reflects our confidence in the Group's sustainable strategy and is part of Leonardo's path for the integration of economic and financial data and ESG objectives ”added Profumo.
THE BANKS THAT HAVE SIGNED THE ESG-RCF
The syndicate banks that have signed the ESG-Rcf are:
Mandated Lead Arrangers and Bookrunners: Banco BPM; BNP Paribas (BNL Lender); BPER Bank; Credit Agricole Corporate and Investment Bank; Intesa Sanpaolo; SMBC Bank EU AG Milan Branch; Société Générale, Milan Branch; UniCredit.
Lead Arrangers: Banca Monte dei Paschi di Siena SpA; Barclays; BofA Securities; Commerzbank Aktiengesellschaft Milan branch; Deutsche Bank AG; HSBC; MUFG Bank, Ltd. – Milan Branch; Santander.
Co-Arrangers: BBVA SA, Milan Branch; Banca Popolare di Sondrio – Joint Stock Cooperative Company; Citi; Mediobanca – Banca di Credito Finanziario SpA; Bank of China Limited Milan Branch; Credit Industiel et Commercial; National Westminster Bank Plc; Natixis SA, Milan Branch; JP Morgan AG; Banca Passadore & C.
Crédit Agricole Corporate and Investment Bank and UniCredit played the role of ESG Coordinators. BNP Paribas has assumed the role of Documentation Agent while Intesa Sanpaolo SpA will assume the role of Facility Agent.
The legal advisers are Linklaters and Clifford Chance.
NEW CREDIT LINE NOT LINKED TO THE ACQUISITION OF HENSOLDT
Finally, Il Sole 24 Ore "asked Profumo if the credit line is also linked to the planned outlay (606 million) for the purchase of 25.1% of the German Hensoldt , announced on April 24, and at what point is the drawing up of authorizations. “It is absolutely not related to the Hensoldt acquisition. We are doing all the procedures. We have received part of the authorizations, we are about to pass the others »”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-le-banche-che-finanziano-leonardo-su-green-e-sostenibilita/ on Mon, 11 Oct 2021 05:20:31 +0000.