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.