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Mundys converts its entire banking facilities totaling €3 billlion into Sustainability-Linked Loans

18 April 2023

CET 18.47 Rome, 18 April 2023 – Mundys positively concluded the conversion into Sustainability-Linked Loans of the existing Euro 1,500 million term loan facility signed on October 5th, 2022 and of the Euro 1,500 million revolving credit facility signed on July 1st, 2022. This conversion follows the adoption by Mundys in November 2022 of a Sustainability-Linked Financing Framework (the “Framework”), which represents an important milestone to execute the commitment of the company to fully integrate sustainability into Mundys’ financing strategy. The interest rate margin of the loans will be adjusted up or down in accordance with the progress that the Group will achieve on environmental and social targets as measured by three Key Performance Indicators under the Framework related to decarbonization of controlled energy sources, pace of transition to green electricity as well as progress on gender balance among leadership roles. Such short-term targets, creating a link between the cost of banking facilities and progress achieved on key environmental and social targets, are consistent with the longer-term Mundys Group’s ambition to be net zero on direct emissions by 2040 and to increase female representation in senior and middle management roles up to 35% by 2030, well above the infrastructure industry market practice. Following the conversion, the entire banking indebtedness of Mundys is now sustainability-Linked, in accordance with the “Sustainability-Linked Loan Principles” published by the Loan Market Association (LMA) and it brings to over 4.8 billion euro the total green and sustainability-Linked bonds and credit lines across the Group. Banco BPM, BNP Paribas, Intesa Sanpaolo – IMI CIB Division and Mediobanca acted as “Sustainability Coordinators” in this transaction.