Prada Group signs €90 million sustainability linked loan

Italy
Published:  11 February, 2021
Credit: Church's

The Italian luxury fashion Group has signed a new sustainability linked loan with the UniCredit banking group.

UniCredit said the ESG linked loan is characterised 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 €90 million, is linked to two Key Performance Indicators; Regeneration and reconversion of production waste, and increasing the share of self-produced energy.

Prada Group’s recent investments in the industrial sector, especially in the most delicate phases of the production process, are said to have led to reducing production waste in clothing, leather goods and footwear while effectively managing its collection and disposal. According to UniCredit, the Group is also 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.

UniCredit said 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 is to 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.

"Sustainability, as a value, is now universally recognised 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", said Alessandra Cozzani, Chief Financial Officer, Prada.