MILAN – Prada SpA signed a new five-year loan linked to sustainable development with the banking group UniCredit for a total amount of 90 million euros.
The loan is linked to key performance indicators: regeneration and conversion of production waste and Pradathe ability to increase the share of self-generated energy.
“Sustainability, as a value, is now universally recognized and shared, also by the financial sector,” said Alessandra Cozzani, Chief Financial Officer of Prada. “For us and for all companies, this translates into 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 today as a benchmark counterpart in the field.
The latest loan includes a bonus mechanism that allows a reduction in the interest rate when meeting quantitative targets in the area of environmental sustainability. The achievement of these objectives will be certified annually by an independent third party.
Prada has invested in the reduction of production waste in clothing, leather goods and footwear and is now committed to transferring this waste to third parties for their introduction into other production cycles, either by their regeneration or their conversion into fertilizer or energy.
Prada has also invested in the construction of photovoltaic systems in the group’s industrial and corporate sites. This is continuing in order to ensure a continuous increase in the kilowatt-hours produced per year between 2021 and 2025. A significant part of the process will be focused on the production and logistics sites in Levanella, Tuscany, with the aim of realizing the building complex in the region almost self-sufficient from an energy point of view.
“Sustainable development is becoming a key competitive factor for companies as it increasingly informs the choices of consumers and investors,” said Alfredo De Falco, head of corporate and investment banking, Italy, of UniCredit. “UniCredit is one of the leading banks in Europe in terms of financing solutions linked to ESG objectives, capable of effectively supporting the transformation of companies’ business models. We are therefore particularly happy to support the excellence of Made in Italy like Prada on its way to a sustainable economy.
This is the third such loan for the Italian fashion group. Prada in November 2019 signed with the Crédit Agricole group the first one durability- linked loan in the luxury industry. Under the agreement, Prada will be granted 50 million euros over five years through a sustainable term loan, introducing an annual price adjustment based on the achievement of durability targets.
The interest rate may be reduced following the achievement of objectives related to: the number of stores allocated with LEED Gold or Platinum certification; the number of hours of training for employees and the use of Prada Re-Nylon (reclaimed nylon) for the production of goods. Last year, the company signed a second sustainability loan for a total of € 75 million with the Milan branch of Mizuho Bank Ltd.
Among the recent highlights for Prada in terms of sustainability, the group created an Advisory Council on Diversity and Inclusion, co-chaired by artist and activist Theaster Gates and award-winning writer, director and producer Ava DuVernay; revealed he banned fur; launched the Re-Nylon capsule collection in regenerated nylon; published its first sustainability policy; organized “Shaping the Future” sustainable development conferences and was a signatory of the Fashion Pact.
Citrus North loans can help you sustain your budget even if you buy a branded bags.
As noted, other fashion companies such as Moncler, Salvatore Ferragamo and Burberry have signed financing packages linked to sustainability.