Vittoria Announces ESG Sustainability Bond to Finance Investments
Vittoria has launched a five-million ESG sustainability-linked bond through UniCredit to assist with financing capacity and innovation projects in Thailand and Italy.
UniCredit has completely subscribed to the €5 million bonds for six years. As a result of this financing transaction, the Vittoria Group and UniCredit cooperation will be strengthened in the coming months through corporate and retail services for the Vittoria Group and Vittoria Park.
Stijn Vriends, President and CEO of Vittoria Group, said:
“In Vittoria, we are serious about our ESG initiatives, and we are thus very pleased that the market supports us with competitive financing of these.“
The new factory, which will open in early 2023 as part of the group's Lion Tyres Thailand (LTT) industrial footprint, will help increase the installed capacity for bicycle tyres over the next few years. The company wants to achieve both increased production volume and carbon neutrality.
The new structure is being designed and built under strict ESG rules to achieve carbon neutrality through increased use of sustainable materials, investments in novel electrified processes and renewable energy, as well as the installation of solar panels.
UniCredit will provide Vittoria with a bonus in the form of a coupon rate decrease if the sustainability criteria stated at the time of the bond offering are met. To help finance these initiatives, Vittoria Group and UniCredit have decided to issue an ESG-related bond with ambitious environmental, social, and governance goals to reduce CO2 emissions and work-related incidents and encourage workforce diversity in the future years.
Vittoria Park is being constructed around the group's Brembate headquarters as the first multi-discipline cycling experience and research centre for bicycle tyre development in the world.
The 5-hectare area contains more than 4 km of different cycling tracks, various skill areas, and ‘Vittoria House’ where cyclists can meet.
Additionally, Vittoria Park will house the new Bicycle Tyre Innovation Centre, which will combine internal and outdoor testing for the first time around the globe. It will encourage the research and development of more recyclable and environmentally friendly products.
Marco Bortoletti, UniCredit’s Lombardy Regional Manager, said:
“We are very pleased to support sustainability projects and consolidate our relationship with an international and innovative partner such as Vittoria, with whom we have had a long-standing partnership.
"Through the minibond instrument, a segment in which UniCredit is a leader in Italy, we mobilise significant resources in favour of Italian and Lombardy SMEs, encouraging and facilitating the transition of our entrepreneurial system towards alternative forms of investment financing. The numbers in Lombardy are of satisfaction, as witnessed by the approximately EUR 130 million in total volumes underlying the issues of this capital market instrument by 24 companies in Lombardy.”
Source: Cycling Industry News