Vittoria has issued a $5 million ESG sustainability bond through UniCredit to help fund its capacity and innovation investments in Thailand and Italy.
The €5 million bond issue has a term of six years and is initially fully underwritten by UniCredit. Following this financing transaction, an enhanced partnership between the Vittoria Group and UniCredit will further develop through corporate and personal services for the Vittoria Group and Vittoria Park in the coming months.
Stijn Vriends, President and CEO of the Vittoria Group, adds: “At Vittoria, we take our ESG initiatives seriously and we are therefore very happy that the market is supporting us with competitive financing of these. »
The new factory which will open in early 2023 will be part of the industrial footprint of the Lion Tires Thailand (LTT) group and will contribute to doubling the installed capacity of bicycle tires over the next few years. The company hopes to be able to achieve both increased production volumes and carbon neutrality.
The new structure is designed and built under strict ESG guidelines and will aim to achieve carbon neutrality through increased use of sustainable materials, investments in innovative electrified processes and renewable energy, as well as the installation of solar panels.
Vittoria will receive a bonus from UniCredit in the form of a reduction in the coupon rate upon achieving the sustainability targets set at the time of the bond issue. To support the financing of these investments, Vittoria Group and UniCredit have chosen to issue an ESG-linked bond, which will have ambitious environmental, social and governance objectives to reduce CO2 emissions, work-related incidents and promote workforce diversity over time. years to come.
Vittoria Park is built around the group’s headquarters in Brembate as the world’s leading all-discipline cycling experience and innovation center for bicycle tire development. The 5 hectare area contains over 4 km of different cycle paths, various skill areas and the ‘Vittoria House’ where cyclists can meet. Vittoria Park will also contain the new Bicycle Tire Innovation Center for high-tech testing facilities that will combine internal and external testing for the first time in the world. It will strengthen research and development of more sustainable and recyclable products.
Marco Bortoletti, UniCredit Regional Director for Lombardy, said: “We are very happy to support sustainable development projects and to consolidate our relationship with an international and innovative partner such as Vittoria, with whom we have a long-standing partnership. date. Through the minibond instrument, a segment in which UniCredit is the leader in Italy, we are mobilizing significant resources in favor of Italian and Lombard SMEs, encouraging and facilitating the transition of our entrepreneurial system towards alternative forms of investment financing. The figures in Lombardy are fully satisfactory, as evidenced by the total volumes of approximately EUR 130 million underlying the issues of this capital market instrument by 24 companies in Lombardy.