OVS will issue 200 million euros of sustainable development bonds


The Italian clothing company OVS SpA has decided to issue a sustainability bond for a maximum amount of 200 million euros and a term of six years. If this sounds familiar to you, other industry giants like H&M, Burberry and Adidas have also recently discovered the value of sustainability bonds.

The OVS Board of Directors met on Monday and decided to issue an unrated, unsecured, non-convertible and unsubordinated senior bond linked to sustainability performance for a principal amount between a minimum of 150 million euros and a maximum of 200 million euros. euros, addressed to institutional investors in Italy and abroad and to private investors in Italy. One of the main shareholders of OVS, Tamburi Investment Partners, has already expressed an interest in subscribing to the new bond.

“With the issuance of this bond loan, the Group’s financial structure, already strengthened thanks to the recent capital increase and excellent performance in terms of cash flow, will be further improved, thus allowing a consequent reduction in the cost of debt. The company said in a statement.

“In addition,… financial resources will be made available to also activate technological innovation initiatives aimed at saving energy, in particular the construction of photovoltaic panels, the replacement of lighting systems by others with less heat loss. , the digitization of the control systems and the energy management of the stores, ”added OVS.

The term of the bond is set at six years from the date of issue, with a minimum interest rate of 2% on an annual basis. The Bond will be issued at 100 percent of the face value, with a face value equal to 1000 euros and will be offered for subscription via the Italian electronic market for government bonds and securities (MOT), organized and managed by Borsa Italiana Spa.

The proceeds from the offer will be used for the early repayment of the Group’s existing financial debt, extending the maturity date of available credit lines and thus freeing up resources dedicated to investments in the circular economy.

The third quarter continues “very favorably” according to OVS. “Delays in delivery have been largely recovered to date and recent inflationary pressures are not considered a threat to our industry; the guidance for the year given at the time of the publication of the first half results is therefore fully confirmed.

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