BNP Paribas and Fincantieri launch the sustainability linked guarantees facility

BNP Paribas Italian Branch and Fincantieri have finalized an agreement to turn the guarantee line for a maximum amount of 700 million euros granted by the bank into a “sustainability linked Guarantees Facility”. The agreement has a minimum tenor of over 4 years and it is the first operation of this kind for the shipbuilding group, according to the company's release.
 
The guarantee line granted by BNP Paribas is defined as “sustainability linked” because it is related to the achievement of two specific performance indicators (Key Performance Indicator, “KPI”) included in Fincantieri’s 2018–2022 Sustainability Plan: efficient energy consumption management and supply chain sustainability. Based on whether or not these goals are achieved, the agreement envisages an upward or downward mechanism for the guarantees' costs, calculated according to a symmetrical grid at the end of each year.