ESG - Prometeon Tyre Group signs €350m sustainability-linked credit facilities agreement - Trade Finance Global

ESG – Prometeon Tyre Group signs €350m sustainability-linked credit facilities agreement

By Patrick Tibke

Patrick Tibke is the Assistant Editor & Copywriter at Trade Finance Global (TFG). He has previously worked as a reporter and researcher at Nielsen, S&P Global, SportBusiness Group, Jakarta Globe, and more. He holds an MA in Journalism from the University of Sheffield, a BA in South East Asian Studies from SOAS at the University of London, and a Diploma in Journalism from the UK's National Council for the Training of Journalists (NCTJ).

Last updated on 02 Jul 2024

30 Dec 2021 1 min reading time

Key Themes:

Prometeon Tyre Group, a subsidiary of Italian tyre brand Pirelli, has signed a new sustainability-linked facilities agreement led by ING Bank.

The deal is comprised of a €200 million term loan and a €150 million multi-currency revolving credit facility.

The tenor is three years with a one-year extension option, and the facilities are for the refinancing of existing indebtedness and general corporate purposes of Prometeon Tyre Group.

The pricing of the facilities is linked to three key performance indicators based on environmental, social, and governance (ESG) targets.

These are, namely, the reduction of scrap tyre waste, the increase of third-party auditing of suppliers, and the increase of the percentage of trained employees at Prometeon Tyre Group.

The facilities were arranged by Dutch financier ING Bank, which is acting as global coordinator, sustainability coordinator, bookrunner, mandated lead arranger, and facility agent.

In addition, Agricultural Bank of China (Luxembourg), China Construction Bank (Europe), and Natixis have joined as bookrunners and mandated lead arrangers.

Bank of America Europe is also a mandated lead arranger, while Arab Banking Corporation and Barclays Bank Ireland are lead arrangers.

Prometeon Tyre Group (formerly Pirelli Industrial and then redenominated in 2017) was established at the end of 2015 as a spin-off from Pirelli.

Prometeon Tyre Group manufactures and sells tyres primarily for industry, transport of goods and passengers, agricultural, and off-the-road (OTR) applications.