Fincantieri, BNP Paribas sign €700M sustainability-linked guarantee facility

February 10, 2022, by Naida Hakirevic Prevljak

Italian shipbuilder Fincantieri and BNP Paribas Italy have finalized an agreement to turn the guarantee line for a maximum amount of €700 million (about $797M) granted by the bank into a sustainability-linked guarantee facility.

As informed, the agreement has a minimum tenor of over 4 years and is the first operation of this kind for the shipbuilding group.

The guarantee line granted by BNP Paribas is defined as “sustainability linked” because it is related to the achievement of two specific performance indicators — key performance indicator (KPI) — included in Fincantieri’s 2018–2022 Sustainability Plan:

efficient energy consumption management and
supply chain sustainability.

As part of the abovementioned plan, the shipbuilder wants to contribute to the fight against climate change and make rational use of energy resources, achieving specific targets.

Fincantieri has also committed to the promotion of a responsible and sustainable supply chain based on long-lasting relationships founded on integrity, transparency and respect.

“Based on whether or not these goals are achieved, the agreement envisages an upward or downward mechanism for the guarantees’ costs, calculated according to a symmetrical grid at the end of each year,” the duo explained.