On November 5th, Prada S.p.A. signed with Crédit Agricole Group the first sustainability linked loan of the luxury goods industry, named Sustainable Term Loan (STL).
"This transaction demonstrates that sustainability is a key element for the development of the Prada Group, increasingly integrated into our strategy,” explained Prada’s CFO Alessandra Cozzani in an official statement released by the brand. “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."
This € 50m five-year term loan – the first of its kind in the industry – introduces a rewarding annual pricing adjustment based on the achievement of ambitious company targets related to sustainability. The interest rate can be reduced following the achievement of targets related to the number of stores assigned with an LEED Gold or Platinum Certification, the amount of training hours for the employees, and the use of Prada Re-Nylon (regenerated nylon) for the production of goods. Crédit Agricole Corporate and Investment Bank will also be acting as Sustainability Coordinator, Sustainability Advisor, and Facility Agent while Crédit Agricole Italia will act as Lender.
“The luxury sector is becoming increasingly committed to developing a sustainable business,” concluded Alberto Bezzi, Senior Banker at Crédit Agricole Corporate and Investment Bank. “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.”