Rome 29 January 2020 18:11 - Inside Information
The loan agreement, in line with the Leonardo Industrial Plan targets, will fund investment projects aimed to support innovation and technological development enabling Group long term sustainable growth
The investments will be focused on 4 main areas: development of technologically advanced products, Cyber Security, IT infrastructures and production efficiency
Leonardo and Cassa Depositi e Prestiti (CDP) have signed a loan agreement of up to 100 million euros.
The financing has the purpose of supporting certain investment projects, part of our Industrial Plan, which are already 50% financed by the European Investment Bank (EIB). These projects are focused on 4 main areas: development of highly innovative products in the Helicopter Division, Cyber Security, IT infrastructures and infrastructure projects needed to increase the production efficiency in some plants.
Alessandro Profumo, Leonardo CEO, commented that “this financing is an additional important contribution in developing more and more innovative products and technologies, increasing plants efficiency, optimising the production systems to strengthen our competitiveness in the businesses where we operate. Importantly, consistent with our Industrial Plan objectives, these investments help enable the Company’s sustainable growth over the long term”.
The investments will enable Leonardo to carry out infrastructure projects in some plants, to support Cyber Security and Advanced Manufacturing activities, to develop innovative technologies that will enable the decrease in emissions of pollutants through products weight reduction and fuel efficiency improvement.
CDP is a related party to Leonardo pursuant to the relevant current regulation in so far as company controlled by the Italian Minister of Economy and Finance.
The above transaction (of “lesser importance”) benefited of the exemption from the application of the Procedure for “Related Parties Transactions” provided for the transactions concluded under market-equivalent or standard-terms adopted by the Board of Directors of Leonardo, in accordance with article 13, subsection 3, letter c) of Consob Regulations no. 17211 of 12 march 2010 (and subsequent amendments and additions) and pursuant to article 11.2, letter c) of the above mentioned Procedure. The economic conditions applied to the transaction are consistent with the actual market conditions as well as competitive compared to a bank or capital market financing of equal duration.