Italy's Terna closes EUR-400m sustainability-linked loan deal

Italian power grid operator Terna SpA (BIT:TRN) has signed a loan agreement to obtain EUR 400 million (USD 438.2m) in debt in order to beef up its liquidity and improve its financial position.

The credit facility is linked to Terna's performance in relation to specific environmental, social and governance (ESG) targets, the company said in a press release.

The five-year loan was extended by Italy’s Banca Nazionale Del Lavoro SpA and Spainish CaixBank SA, which served as original lenders. The Italian branch of France’s BNP Paribas SA acted as sustainability coordinator for the transaction.

Commenting on the deal, Terman said that it confirms the central role that sustainability plays in its strategy and allows it to “count on a liquidity appropriate to its financial soundness. The financing round comes on the heels of a similar transaction from the beginning of July, in which the company secured an ESG-linked credit facility from Italian lender UniCredit SpA worth EUR 200 million.

(EUR 1.0 = USD 1.096)

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