Feralpi, a leading Italian company in the steel sector, is moving forward with its 2022-26 industrial plan through a major financial operation aimed at supporting its transition to low-emission steel. The company has secured a €170 million Sustainability Linked Loan, backed by the Archimede Guarantee of Italy’s state-owned export credit agency SACE, to fund investments focused on innovation and sustainability.
The loan is structured in two tranches: a €120 million Capex tranche and a €50 million Refi tranche, both intended for ordinary and extraordinary industrial investments. The goal is to enhance production efficiency, improve industrial flexibility, and expand the product range while simultaneously reducing CO₂ emissions.
The Sustainability Linked Loan features a variable financial margin based on the achievement of two ESG performance indicators. The first indicator measures the reduction of greenhouse gas emissions, considering Scope 1, Scope 2 (market-based), and part of Scope 3, in line with the Science-Based Targets Initiative (SBTi) guidelines. The second indicator tracks the percentage of employees working in companies certified under ISO 45001, ensuring high standards of workplace safety.
Giuseppe Pasini, president of Feralpi Group, emphasized the importance of this financing in the company’s sustainability journey: "Being at the forefront of the steel industry means proving that economic growth can go hand in hand with environmental and social responsibility. Choosing a Sustainability Linked Loan reflects Feralpi’s commitment to aligning financial performance with ESG goals, ensuring transparency and measurable progress."
Feralpi announced that the loan was secured through a consortium of banks, including BNL BNP Paribas, Crédit Agricole Italia S.p.A., Intesa Sanpaolo S.p.A. (IMI CIB Division), and Unicredit S.p.A., which acted as Lenders, Global Coordinators, Mandated Lead Arrangers, Bookrunners, and Sustainability Coordinators. BNL BNP Paribas also served as Agent Bank and SACE Agent. Additionally, Banco BPM, BPER, and Cassa Depositi e Prestiti participated in the operation as MLAs and lending institutions.