Terra Moretti, the group from Erbusco, in the province of Brescia, active in wine and luxury hospitality, has issued a sustainability-linked bond for 15 million Euros. The bond is signed by three credit institutions (Cdp-Cassa Depositi e Prestiti, Banca Sella and Banca Valsabbina) and aims to finance new projects, from the modernisation of cellars to the expansion of hotel facilities. Regarding the subdivision of the subscription, Cdp, contributes with 7.5 million Euros, Banca Sella with 4 million and Valsabbina with 3.5 million Euros: according to the official release, Cdp and Banca Valsabbina acted as investors and Sella Investment Banking as exclusive financial advisor and arranger of the transaction.

Terra Moretti has six wineries in three regions: Bellavista and Contadi Castaldi in Franciacorta; Petra, Teruzzi and Acquagiusta in Tuscany; Sella&Mosca with Casa Villa Marina in Sardinia. The financial project is handled by Sella Investment Banking as main advisor: the bond is listed on the professional segment of Euronext Access Milan of Borsa Italiana. The bond issue, with a duration of 7 years, will allow Terra Moretti to "support the growth and development of business in the wine sector and in the hospitality industry". They are planned, the note stresses, "investments to support and enhance the activities related to the process of harvesting and aging of wine in cellars and the modernization and expansion of the hotel structure Albereta Relais & Chateaux with the aim of maintaining the standards appropriate to the market of the extra-large hospitality".

The sustainability-linked bond, continues the note, "involves the identification of specific Sustainability Performance Targets (SPTs) that are both ambitious and realistic, as well as the definition of Sustainability KPIs (ESG KPIs) that allow to assess the alignment of the investment project with sustainable development objectives". When these targets are met, the interest rate on the instrument is reduced (so-called "step down").

"Sustainability-linked bonds -explains Graziano Novello, head of Private debt at Sella Investment Banking- are an ideal instrument for financing business growth projects combining economic development and sustainability objectives, Supporting companies in generating positive environmental, economic and social impacts. This operation is a source of great pride for us, because it allows us to support Terra Moretti, a company with a long tradition in its sector, accompanying it towards sustainable and innovative growth, with the added value of a quotation that allows giving the right visibility to a project as ambitious as it is significant".

Vincenzo Paolo Carbonara, CDP’s Finance Alternative Manager, said: "We are proud to have concluded this operation in favor of an important reality for the territory of Brescia and active in strategic sectors for the Italian economy, such as wine and hospitality. The operation in favour of Terra Moretti confirms CDP’s desire to further strengthen its proximity to the territory, alongside excellence that wants to grow and become more competitive".

"We decided to contribute in an important way to this operation, investing to support the strategy of development of a historical reality of our territory -declares Hermes Bianchetti, deputy general director vicario of Bank Valsabbina-. As a bank, we want to support our companies' business initiatives in a concrete way, also by identifying the 'complementary' financing instruments most suited to their needs, such as bond issues. In this case, the investment project also includes sustainability objectives, which are well-suited to a company like Terra Moretti, sensitive to innovation and increasingly part of a path of virtuous growth".