Circular Economy: financing agreement of EUR 45M to Zignago Vetro

Intesa Sanpaolo, through its Corporate & Investment Banking Division, has signed a financing agreement of EUR 45M to Zignago Vetro, one of the leading producers of hollow glass containers, aimed at achieving specific circular economy objectives.

The transaction consists of a five-year credit line characterized by a pricing mechanism linked to the achievement of specific circular economy targets. These objectives envisage a significant improvement in environmental impact of the company which will thus strengthen its production and energy efficiency.

Intesa Sanpaolo also supported Zignago Vetro through a hedging transaction aimed at protecting the Company against the exposure to the risk of fluctuations in interest rates linked to the loan. In addition, the hedging strategy used ("ESG-linked Interest Rate swap") provides for a reward mechanism based on the achievement of sustainability performance objectives.

The tool demonstrates how the product innovation constitutes one of the pillars of the activity of the IMI Corporate & Investment Banking Division of Intesa Sanpaolo as it allows to expand the application of even complex strategies such as hedging ones and to associate them with systems incentives towards ESG policies.

“The transaction with Zignago Vetro confirms that issues related to sustainability and improvement of environmental impact are increasingly central to the strategies of Italian companies,” commented Mauro Micillo, Chief of IMI Corporate & Investment Banking Division of Intesa Sanpaolo. “In order to boost and support the green economy, Intesa Sanpaolo has long developed a wide, diversified range of financing and advisory products, dedicated to all types of customers, in Italy and abroad. Intesa Sanpaolo is thus closing another transaction under the Circular Economy programme, which since its launch has financed 194 projects for a total of approximately €3.5 billion.”

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