Pirelli subscribes to 800 million euro ‘sustainable’ credit line

Pirelli has subscribed to a new 800 million euro line of credit financing with a number of leading Italian and international banks. This line of credit has a five-year maturity and is entirely sustainable, in accordance with Pirelli’s economic and environmental sustainability targets.

This new financing will primarily be used to repay existing debt. It enables Pirelli to further increase the “already substantial coverage” of its financial debt maturities for up to approximately three years on slightly better economic terms than those outlined in the company’s Industrial Plan.

Recently, Pirelli also extended the maturity of a 200 million euro credit line by over one year, from June 2020 to September 2021.

These transactions are part of the strategy that Pirelli presented to the market on 19 February. The tyre maker says they “underscore Pirelli’s capacity to refinance notwithstanding the context of macroeconomic uncertainty.”