Avoni Industrial Has Issued a Sustainability-Linked Minibond Worth 2.5 Million Euros

Avoni Industrial srl, a historic company in the Bologna area, official distributor of FPT Industrial engines and spare parts, has issued a sustainability linked minibond of 2.5 million euros underwritten by UniCredit. The operation is 70% supported by SACE Guarantee.

The bond has a duration of 6 years and the operation is aimed at supporting the company in the development of products powered by endothermic engines capable of reducing the environmental impact of mobile and stationary machines (Stage V emission level), which use HVO (Hydrotreated Vegetable Oil) biofuel, renewable and carbon neutral.

Founded in the heart of the Bologna Motor Valley in 1948, Avoni is a historic company specializing in the sale of FPT Industrial engines and spare parts for on- and off-road vehicles. The company has always stood out for its ability to respond to the needs of a constantly evolving market, becoming a point of reference for quality and innovation.

Thanks to its passion for engines and a consolidated network of partners, Avoni offers cutting-edge solutions for the agricultural and industrial sectors. Today, with over 70 years of experience, it continues to look to the future, maintaining strong roots in tradition with an eye on the challenges of tomorrow.

One of Avoni’s main sustainability goals is to make internal combustion engines usable in carbon neutrality, making their use and dedicated services more efficient

Francesco Avoni, CEO of Avoni Industrial Srl, said: “This is a strategic step to finance our projects in the name of sustainability and innovation, with the main objective of bringing a consolidated product such as the internal combustion engine to full compliance with the guidelines on renewability and carbon neutrality. This agreement will allow us to give continuity to our long entrepreneurial history in the automotive sector, strengthening our commitment to achieving new and prestigious goals. We thank UniCredit for their trust and we are excited to be able to look to the future with renewed ambition and responsibility.”

Andrea Burchi, Regional Manager Centro Nord UniCredit, commented: “The minibond instrument allows SMEs to approach the capital market, diversifying their sources of financing. These issues constitute a financial leverage that allows in concrete terms to support the growth projects of companies and, thanks to the characteristics of our Sustainability linked offer, represent a real opportunity to increase the resources dedicated to ESG issues. This operation confirms our Group’s commitment alongside entrepreneurs, to support them in growing in competitiveness and to support the development and well-being of the local economy.”

This sustainability-linked bond issue is a tool of the sustainable finance market that incentivizes the achievement of ESG performance objectives. It also provides for a margin adjustment mechanism that includes the reduction or increase of the interest rate upon achievement or otherwise of the targets set out in the sustainability clauses with which the company undertakes, over the course of the plan, to obtain and improve the ESG rating assigned by a body responsible for certifying the achievement of the targets.

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(Featured image by Cody Nottingham via Unsplash)

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First published in Be Beez. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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