Global law firm Ashurst has acted for Pricoa Private Capital, the private capital business of Prudential Financial, Inc., as initial purchaser of ESG-linked bonds issued by Italian listed company SIT S.p.A. (SIT) to diversify its funding sources and improve financial flexibility.
SIT is the parent company of SIT Group (the Group), which is a leading global manufacturer and supplier of smart solutions for climate control and consumption measurement. The Group has subsidiaries and operations in, among others, Italy, Netherlands, Romania, Portugal, China, USA and Mexico; it has recorded revenues in excess of €320 million in 2020, with an adjusted EBITDA of more than €44 million and a net profit of more than €13 million.
The overall principal amount of the recently issued bonds is equal to €40 million. Additional bonds may be issued under a “shelf arrangement” for a total amount (including the initial issuance) of up to US$100 million (or the equivalent in Euro). The bonds have a maturity of 10 years, with a 6-year pre-amortisation period. Starting from the fifth year, the fixed half-yearly coupon to be paid to holders of the bonds will be indexed to a sustainability rating (ESG) provided by international agency EcoVadis.
UniCredit acted as Sole Arranger and Sole Sustainability Advisor, while BNY Mellon acted as settlement and paying agent. Chiomenti Studio Legale acted as legal counsel to the issuer.
The Ashurst cross-border deal team was led by Milan banking partner Mario Lisanti, supported by counsel Gianluca Coggiola and associate Francesca Cioppi. Milan-based tax partner Michele Milanese advised on certain Italian tax aspects of the deal. The London team was co-led by partners Anna Delgado and Jeffrey Johnson, supported by senior associate Kavisha Bilimoria and associate Ben Suthers.