Prada Group Obtained The First "Sustainable" Commercial Loan In The Luxury Industry, With A Total Amount Of 50 Million Euros Over Five Years

On November 5, Prada S.p.A, an Italian luxury goods group, announced that it had signed the first "sustainable" commercial loan agreement in the luxury industry with Cr é dit Agricole Corporate and Investment Bank, an investment bank under the Credit Agricole.

According to the agreement, Credit Agricole Orientale will provide Prada Group with a five-year term loan with a total amount of 50 million euros. If Prada Group can achieve the sustainable development goal specified in the agreement, Credit Agricole will reduce the loan interest rate accordingly. Sustainable goals include:

A certain number of Prada Group's direct sales stores can obtain LEED (Energy and Environmental Design Pioneer) gold green building certification or platinum certification

Prada Group completes the employee sustainable training class specified in the agreement

Prada Group Expands the Use of Recycled Nylon Materials in Seasonal Products

Alessandra Cozzani, chief financial officer of Prada Group, said: "This new form of loan reflects the importance of sustainable development for Prada Group. The Group's brands including Prada, Miu Miu, Church's and Car Shoe will further implement sustainable development measures in the future."

On June 24 this year, Prada announced the launch of Econyl recycled nylon bag series in cooperation with Aquafil. There are 6 classic styles in this series, including: waist bag, shoulder bag, handbag, luggage bag and two backpacks. The whole series is made of environment-friendly materials, and the Prada classic triangle logo is also specially designed. Prada plans to complete the complete transformation from pure nylon to Econyl regenerated nylon by 2021.

　　 Alberto Bezzi, a senior banker of Credit Agricole, said: "The luxury industry has begun to pay more and more attention to sustainability. I am glad to be able to facilitate this cooperation and continue to work with Prada to promote sustainable development of the industry."

The sustainable loan is provided by Credit Agricole as the sustainable adviser, coordinator and fund agent, and the lender is Cr é dit Agricole Italia.

In areas outside the luxury industry, sustainable lending is no longer new. As consumers and the industry attach importance to sustainable development, the total amount of sustainable loans in 2018 has increased from $5 billion in 2017 to $40 billion. Earlier this year, Credit Agricole signed a five-year bond agreement with Enel, an Italian energy company, with a total amount of US $1.5 billion. If Enel can increase the installed capacity of renewable energy to 55% or more before December 31, 2021, the coupon rate will be 2.650%.