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PRADA S.P.A. SIGNS THE FIRST SUSTAINABILITY LINKED LOAN OF THE LUXURY GOODS INDUSTRY

November 5, 2019

Milan, 5th November 2019 – Prada S.p.A. signed with Crédit Agricole Group the first Sustainability Linked Loan of the luxury goods industry.

This facility, a first in the industry, introduces a rewarding annual pricing adjustment based on the achievement of ambitious targets related to sustainability.

Alessandra Cozzani, Chief Financial Officer of Prada S.p.A.: "This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy. We are confident that this collaboration with Crédit Agricole, a leader in its sector, will help to extend the benefits of a responsible business to the financial world."

Alberto Bezzi Senior Banker at Crédit Agricole Corporate and Investment Bank: “The luxury sector is being increasingly committed in developing a sustainable business. I am very proud of this collaboration, which confirms Prada’s ongoing efforts for engaging in and cultivating virtuous behaviors that contribute to its sustainable growth.”

This new facility, named Sustainability Term Loan, is a EUR 50m five-years term loan which interest rate can be reduced following the achievement of targets related to:

  • the number of stores assigned of a LEED Gold or Platinum Certification;
  • the amount of training hours for the employees;
  • the use of Prada Re-Nylon (regenerated nylon) for the production of goods.

The Sustainability Term Loan was arranged by Crédit Agricole Corporate and Investment Bank, acting also as Sustainability Coordinator, Sustainability Advisor and Facility Agent while Crédit Agricole Italia acted as Lender. 

PRADA Group

Prada S.p.A. – HKSE Code 1913 – is a global leader in the luxury goods industry, where it operates with the Prada, Miu Miu, Church’s and Car Shoe brands in the production and distribution of handbags, leather goods, footwear, apparel and accessories. The Group also operates in the food sector with Marchesi 1824, and in the eyewear and fragrance industries under licensing agreements. Its products are sold in 70 countries worldwide through 637 directly operated stores as of June 30, 2019 and a selected network of luxury department stores, multi-brand stores and franchise stores.

Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB)

Crédit Agricole CIB is the corporate and investment banking arm of Credit Agricole Group, the 12th largest banking group worldwide in terms of tier 1 capital (The Banker, July 2019). Nearly 8,000 employees across Europe, the Americas, Asia-Pacific, the Middle East and Africa support the Bank's clients, meeting their financial needs throughout the world. Crédit Agricole CIB offers its large corporate and institutional clients a range of products and services in capital markets activities, investment banking, structured finance, commercial banking and international trade. The Bank is a pioneer in the area of climate finance, and is currently a market leader in this segment with a complete offer for all its clients. For many years Crédit Agricole CIB has been committed to sustainable development. The Bank was the first French bank to sign the Equator Principles in 2003. It has also been a pioneer in Green Bond markets with the arrangement of public transactions from 2012 for a wide array of issuers (supranational banks, corporates, local authorities, banks) and was one of the co-drafter of Green Bond Principles and of the Social Bond Guidance. Relying on the expertise of a dedicated sustainable banking team and on the strong support of all bankers, Crédit Agricole CIB is one of the most active banks in the Green bonds market. 

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