Italian shipbuilder Fincantieri has secured an €800m ($847m) ‘sustainability loan' to help strengthen its financial structure.
The state-guaranteed funding will be loaned over a period of five years. It is provided by several banks and is tied to the shipbuilder’s performance on a range of green issues.
Some 70% of the loan is guaranteed by finance and insurance group SACE, which is directly controlled by the Italian Ministry of Economy and Finance.
Fincantieri said the funding is tied to the shipbuilder’s performance in three target areas.
These are set out in the shipbuilder’s 2023-2027 Sustainability Plan.
They include the reduction of Scope 1 and Scope 2 greenhouse gas (GHG) emissions.
A second target involves the development of energy-efficient cruise ships in Italy.
The third goal links the performance of the shipbuilder to gender equality and requires promoting women in senior roles.
Fincantieri will use the finance for organic growth and to develop its shipbuilding backlog.
The loan is provided at a time when the Pierroberto Folgiero-led shipbuilder has been struggling to regain a profit
The Italian shipbuilding group made a net loss of €22m in the first six months of the year.
Adjusted profit — which measures operating results before non-recurring income and extraordinary expenses — was €3m.
That is much improved compared with a €94m loss in the same period last year, but the company remained in the red due to a €33m hit related to asbestos-related litigation costs.
Fincantieri is a diverse group with cruise, naval and offshore shipbuilding divisions on different continents.
Its revenues rose by €159m to €3.67bn over the period, reflecting the recovery of key performance indicators,
Fincantieri is seeking to modernise its production sites and launch new technology-driven projects.
The shipbuilder expects its net financial position this year to be in line with the 2022 year-end. It has maintained its 2023 forecast with an Ebitda margin for the full-year forecast at 5%.
