Pirelli & CSpA announced today that it has successfully launched and placed its first sustainability-linked bond for a total nominal amount of 600 million euro. The emission took place beyond 190 international investors.
La question it was almost six times the offer and amounts to about 3,5 billion euros.
First Sustainability Bond in the Tire sector
This issue is the first Sustainability-linked with size benchmark placed by a company in the sector tire globally.
The bond has a duration of five years (deadline January 18, 2028) and one coupon of 4,25%.
Il effective yield at maturity it is equal to 4,317%, corresponding to a yield of 145 basis points above the reference rate (mid swap).
The titles will be unlisted on the Luxembourg Stock Exchange.
The operation, which took place in the context of the EMTN program (Euro Medium Term Note Programme) approved by the Board of Directors on 23 February 2022, makes it possible to optimize the debt structure, extending its maturities and diversifying its sources.
The operation is the first carried out since Pirelli obtained the investment-grade rating by S&P Global and Fitch Ratings as evidence of the company's commitment to integrating sustainability into its business strategy and is linked to the 2025 objectives for the reduction of absolute greenhouse gas emissions and emissions from purchased raw materials.
Tronchetti Provera: Sustainability is a central part of the Pirelli strategy
“Pirelli is there first company in the world in the tire sector to launch a benchmark bond issue linked to sustainability objectives. This operation reaffirms the centrality of sustainability in our corporate strategy and Pirelli's ability to integrate a responsible approach into all business activities to create value for all Stakeholders,” said Marco Tronchetti Provera, Executive Vice President & CEO of Pirelli.
