Prada has proved green is in this season with what it claims to be the first Sustainability Linked Loan in the luxury goods industry.
It has secured the €50 million (£42.8m) five-year loan with Crédit Agricole Group – the interest rate can be reduced if Prada reaches sustainable milestones, such as increasing the number of stores assigned a top efficiency rating, providing more training hours to the employees or using more regenerated nylon for the production of goods.
It is thought to be the first loan in the sector featuring a rewarding annual pricing adjustment based on the achievement of ambitious green targets.
Alberto Bezzi Senior Banker at Crédit Agricole Corporate and Investment Bank: “The luxury sector is being increasingly committed in developing a sustainable business.
“I am very proud of this collaboration, which confirms Prada’s ongoing efforts for engaging in and cultivating virtuous behaviours that contribute to its sustainable growth.”
The Sustainability Term Loan was arranged by Crédit Agricole Corporate and Investment Bank, acting also as Sustainability Coordinator, Sustainability Advisor and Facility Agent while Crédit Agricole Italia acted as Lender.