Italy’s Pirelli mandates banks for first sustainability-linked bond

Chicago, Jan. 9 – Pirelli & C. SpA (BBB-/BBB-) has chosen banks to sell its first euro-denominated sustainability-linked bond with a five-year tenor that is expected to be benchmark size, according to information from a source.

BNP Paribas and BofA Securities will be the global coordinators and sustainability structuring agents.

Barclays, Deutsche Bank, IMI-Intesa Sanpaolo, Mizuho and UniCredit have been appointed as active bookrunners.

Investors calls started on Monday for the Regulation S deal.

Proceeds will be used for general corporate purposes.

The coupon will be tied to two key performance indicators involving GHG emissions. If the company fails to meet its targets on either one of the indicators, the rate will step up 25 basis points. If neither goal is met, the rate will step up 50 bps.

Based in Milan, Pirelli is a tire company with a presence in more than 160 countries.

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