Aeroporti di Roma Signs New €350 Million Sustainable Credit Line

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by KnowESG
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Aeroporti di Roma (ADR) has executed a new €350 million sustainability-linked revolving credit facility with a 5-year tenor and up to 2-year extension options.

Marco Troncone, Chief Executive Officer of Aeroporti di Roma, said: 

"This transaction, in its distinctive sustainability-linked format, further increases the share of sustainable financing sources and enriches and strengthens our concrete commitment on this front, which is a cornerstone of the Group's strategy. 

"In fact, despite the current challenges in the energy sector, our decarbonisation commitment is becoming even more ambitious, increasing threefold the accessibility emissions (Scope 3) reduction goal, relying mainly on a future network of 5,400 recharging points for electric vehicles, the first ones already operational from September, and focusing on rail access, enhancing the partnership with Ferrovie dello Stato. The set of commitments is also enriched with a gender equality target within the key management figures of our Group. 

"The undertakings in our Financing Framework are being reported on and continuously monitored by third parties, confirming that this is the time for concreteness and credibility in support of a transitional phase in one of Italy's strategic sectors, which will be challenging but, with the right approach, achievable in the necessary timeframe and manner."

The new credit line, which replaces the previous €250 million revolving credit facility signed in July 2016 and expiring in July 2023, aims to improve the company's liquidity profile.

Following the 2021 bond issue, the transaction has a sustainability-linked format to strengthen the deep integration of sustainability goals and the company's financial plan. Thanks to the new revolving credit facility, sustainable finance instruments now account for approximately 40% of the ADR's capital structure, with a goal of achieving at least 50% by 2025.

The applicable interest rate (and, as a consequence, the commitment fees on undisbursed amounts) will be subject to a yearly step-up or step-down adjustment, depending on whether or not the sustainability targets relating to the following indicators were achieved during the previous year:

  • Direct and indirect CO2 emissions associated with Fiumicino airport and directly controlled by ADR (Scope 1 and Scope 2)

  • CO2 emissions associated with Fiumicino airport depend on third parties, essentially with reference to mobility to and from the airport (Scope 3)

  • Gender equality in middle and senior management within the ADR group.

The first two KPIs contribute to the achievement of UN Sustainable Development Goal (SDG) 13, "Take urgent action to combat climate change and its impacts," under ADR's "Sustainability-Linked Financing Framework," which was updated in April 2022 and is accompanied by Sustainalytics' Second-Party Opinion.

The third KPI contributes to the achievement of SDG 5, "Achieve gender equality and empower all women and girls," by supporting Aeroporti di Roma's inclusive and gender diversity promotion strategy.

The credit facility is provided by eight major financial institutions: Banco BPM, Barclays, BNP-Paribas, Crédit Agricole CIB, Intesa Sanpaolo, Mediobanca, Natixis, and Société Générale, who operated as Mandated Lead Arrangers and Bookrunners jointly.

Source: ADR

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