Mundys takes another step on the sustainability front

Loans whose rate to be paid may decrease if certain environmental or social objectives are achieved. These are sustainability-linked loans, which are increasingly gaining ground on the market because they stimulate the action of companies in the field of sustainability transition to a more inclusive development model.

The latest news in this sense comes from Mundyswhich thus converted the one and a half billion euro loan agreement signed last October and the revolving line of the same amount dating back to July.

The green strategy is strengthened

The transaction is part of the project for the adoption by Mundys, in November 2022, of a Sustainability-Linked Financing Framework, which set the corporate objectives and the timescales to achieve them in terms of all-round sustainability. The latter tool, built with the support of Cacib (Crédit Agricole Corporate & Investment Bank) as ESG advisor, contains defined and measurable objectives on the entire portfolio of assets managed, to allow constant monitoring of the progress of industrial programs and initiatives to implement the energy transition of its assets.

The characteristics of the operation

Returning to the conversion of the loan, the interest rate paid by the former Atlantia will be increased or decreased based on the progress that the group will make on environmental and social objectives, measured by three performance indicators defined in the framework, relating to decarbonisation of its energy sourcesthe speed of transition to green electricity from renewable sources and ai progress in gender equality in managerial roles. These short-term goals, which link the cost of bank lines to progress made on environmental and social goals, are consistent with the long-term ambition of the Mundys group to achieve zero direct emissions by 2040 and to increase the representation of women in managerial roles to 35% by 2030, above market practice in the infrastructure sector.

After the conversion, Mundys’ entire bank debt is now linked to sustainability goals. Thus the Italian holding takes a new step to stand out on the market for its sustainable initiatives. The steps taken so far in the field of combating climate change and in favor of decarbonisation have earned the promotion by Carbon Disclosure Project (Cdp). The latter gave it the “A-” rating compared to the previous “B”, on a scale in which “D-” represents the minimum score and “A” the maximum.