Pirelli approves 400-million-euro sustainability-linked bank line

At a meeting on 22 June, the Board of Directors of Pirelli approved the underwriting of a sustainability-linked credit line for an amount up to 400 million euros. This credit line with a “select pool of international banks” has a 19-month maturity and “enables the further optimisation of the group’s financial structure.”

Pirelli will use the new line to reimburse part of the company debt maturing in 2023 and states that it “contributes to preserving the liquidity margin,” with debt maturities covered until the first half of 2024.

The line is benchmarked to Pirelli’s target of reducing absolute greenhouse gas emissions from raw materials purchased (Scope 3), as validated by the Science Based Targets initiative (SBTi) and contained in Pirelli’s ‘Sustainability-linked financing Framework’ document, which contains the company’s guidelines and commitments to stakeholders in relation to sustainable finance.

In addition, the Board updated the resolutions regarding the issue of bond loans of 1 billion euro as part of the 2 billion euro EMTN programme, revoking the decision approved on 23 February 2022 and simultaneously approving a new one for the issue, always in the context of the EMTN programme, of non-convertible bond loans up to 1 billion euro to be placed with institutional investors and executed by May 2023 to take into account the changed market conditions and interventions – already carried out or foreseen – by central banks.