Pirelli signs new €600m credit line to advance sustainability targets

Milan, Italy – Pirelli has signed an agreement with a select pool of international banks for a new term loan line of credit for a total of €600 million, maturing in October 2028.

The new line was signed within the context of the usual activities of managing and optimizing the financial structure, said Pirelli in a 22 March statement.

The financial facility will permit the early reimbursement of part of Pirelli’s debt maturing in 2025, helping reinforce the liquidity margin and lengthening debt maturities.

According to Pirelli, the new credit line is linked to the “new and more challenging targets”, submitted to the Science Based Target initiative (SBTi).

The new targets were announced earlier this month as part of the tire maker’s 2024-2025 industrial plan.

These include reducing Scope 1 and Scope 2 (own operations) greenhouse gases by 60% by 2025 and 80% by 2030 compared with 2018.

For Scope 3 emissions from supply chain, Pirelli intends to cut greenhouse gases by 27% by 2025 and 30% by 2030 compared with 2018.

With the new sustainability targets, Pirelli claims to be “the first tire sector company” to set itself the target of achieving Net Zero in 2040.