A2A, Sustainability-Linked Credit Line in Support of the Banco dell'energia Non-Profit Organisation
Milan, 2nd july 2021 - A2A Group has signed a five-year, 500 million Euro Sustainability-Linked Revolving Credit Facility.
The margin of the new credit facility is in fact linked to two strategic targets in the field of energy transitioning and the circular economy which A2A has defined in its 2021-2030 Business Plan and which are included in the recently published Sustainable Finance Framework. The first goal is related to the growth of installed capacity from renewable sources while the second is represented by the increase of recovered materials from treated waste. The two targets also contribute to the achievement of UN SDGs 7, 11, 12 and 13.
The facility envisages a margin adjustment mechanism both if A2A reaches the sustainability performance targets (step down) as well as in case the Group fails to reach those targets (step up).
Savings stemming from the achievement of the targets or the potential penalty caused by the nonachievement will be donated to the community: such amount will be granted to Banco dell'energia Non-Profit Organisation, a charity body promoted by A2A, and the AEM and ASM Foundations, set up with the aim of supporting those who find themselves in situations of economic and social fragility, with particular attention to energy poverty. This donation will not replace and will be on top A2A's usual financial support provided to Banco dell’energia.
“This credit facility, issued in accordance with the new Sustainable Finance Framework recently published by A2A, further underlines how sustainability is a central element not only in A2A’s financial strategy, but in every activity the company undertakes,” commented Andrea Crenna, A2A Chief Financial Officer. “This instrument, which represents a novelty in terms of private lending, will be deployed in support of Banco dell’energia Onlus.”
The Banco dell'energia Non-Profit Organisation contributes to the fight against poverty and social vulnerability through recovery paths that also include the distribution of basic necessities and the payment of urgent expenses, such as the bills of any energy operator. The Banco distributes its received donations under an indirect solidarity mechanism, which rely on the mutual cooperation of non-profit organizations of proven reliability, selected both through calls for proposals promoted jointly with Fondazione Cariplo as well as through specific projects linked to innovation and awareness of energy consumption.
Intesa Sanpaolo and Société Gènèrale acted as "Sustainability Coordinators" in this transaction, while Mediobanca acted as Agent. The new facility has been underwritten by 8 leading global financial institutions: Intesa Sanpaolo, Société Générale, Santander, BNP Paribas and BNL, Unicredit (in the joint role of "Mandated Lead Arrangers" and “Bookrunners”), Citi, JP Morgan and Mediobanca.
A2A was assisted by the law firm Orrick.
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