Feralpi Group renews its partnership with Intesa Sanpaolo, following the recent 40-million-euro loan agreement aimed at achieving specific targets related to sustainability and the circular economy.
Feralpi and Intesa Sanpaolo signed the first CE-linked Interest Rate swap, which rewards the company’s virtuous conduct by improving the conditions underlying the derivative if the circular economy objectives are met. The IMI Corporate & Investment Banking Division has structured a hedging transaction that hedges exposure to fluctuations in the interest rates linked to the loan.
The transaction represents an absolute innovation on the Italian market. In fact, it is the first circular derivative based on an interest rate risk hedging mechanism that reduces the fixed rate paid by the company based on the achievement of the circular economy targets envisaged in the financing process. The loan hedge agreement features a reward mechanism that is linked to the achievement of Environmental, Social and Governance objectives through an ESG-linked Interest Rate swap, setting specific circular targets through a CE-linked Interest Rate swap.
On the one hand, this confirms Feralpi’s commitment to improving its environmental, social and economic performance by actively meeting the ESG criteria. On the other hand, it further substantiates how the product innovation channel is one of the pillars on which Intesa Sanpaolo’s IMI Corporate and Investment Banking Division is founded, allowing the wider application of even complex strategies such as hedging strategies and their association with incentive systems that aim for excellence through the implementation of ESG policies.