Granarolo secures 450 million in funding linked to sustainability targets

450 million to support the next phase of growth, but above all to shift gears: following years of expansion, Granarolo aims to consolidate what it has built, from Italia to international markets.

The Bologna-based dairy group has secured a loan of €450 million from ten credit institutions, intended to support its strategic plan and linked to the achievement of sustainability targets. At the heart of this are more efficient plants, clean energy and a more careful use of water. And the aim to consolidate an overseas presence that now accounts for over 41 per cent of turnover.

This decision also reflects how the relationship between industry and finance is changing: credit does not merely support development projects, but also rewards achievements in environmental, social and governance areas. This is the rationale behind the “sustainability-linked” financing agreed by Granarolo, which provides for incentives upon the achievement of specific targets. The group has not disclosed the individual targets or the extent of the expected benefits. The 450 million will be made available through two term loan facilities and a flexible credit facility, to support the requirements of the business plan.

“We will fund the Group’s sustainable strategic plan, focusing on operational efficiency and effectiveness, as well as internationalisation,” explains the chairman Stanislao Giuseppe Fabbrino. The challenge now is not only to expand the reach of ‘Made in Italy’, but to make the industrial infrastructure that underpins it more robust and sustainable. “We will place sustainability at the heart of our efforts,” adds Fabbrino, “by promoting clean energy and water recovery in our factories. “We have grown rapidly in Italia and abroad; now is the time to consolidate what we have achieved in terms of economic and environmental sustainability.”