Terra Moretti launches 15 million euro sustainability-linked bond for growth in wine and hospitality sectors

Terra Moretti, a group based in Erbusco, Brescia, has launched a sustainability-linked bond worth 15 million Euros. This bond is backed by three financial institutions: Cdp-Cassa Depositi e Prestiti, Banca Sella, and Banca Valsabbina. The funds will be used for projects like modernizing wine cellars and expanding hotel facilities. Cdp has invested 7.5 million Euros, Banca Sella 4 million, and Valsabbina 3.5 million. Cdp and Banca Valsabbina are investors, while Sella Investment Banking served as the financial advisor and arranger.

Terra Moretti operates six wineries across three regions: Bellavista and Contadi Castaldi in Franciacorta, Petra, Teruzzi, and Acquagiusta in Tuscany, and Sella&Mosca with Casa Villa Marina in Sardinia. Sella Investment Banking is the main advisor for this financial project. The bond is listed on Euronext Access Milan of Borsa Italiana and has a seven-year term. It aims to support Terra Moretti's growth in the wine and hospitality sectors. Planned investments include enhancing wine harvesting and aging processes and modernizing the Albereta Relais & Chateaux hotel to meet high hospitality standards.

The bond is linked to specific Sustainability Performance Targets (SPTs) and Sustainability KPIs (ESG KPIs). Meeting these targets can reduce the interest rate, known as a "step down." Graziano Novello, head of Private Debt at Sella Investment Banking, stated that sustainability-linked bonds are ideal for financing projects that combine economic growth with sustainability goals. This initiative supports Terra Moretti's sustainable and innovative growth, providing visibility to their ambitious project.

Vincenzo Paolo Carbonara, CDP’s Finance Alternative Manager, expressed pride in supporting Terra Moretti, a key player in Brescia's wine and hospitality sectors. This operation aligns with CDP’s goal to strengthen ties with local businesses and support their growth and competitiveness. Hermes Bianchetti, deputy general director of Bank Valsabbina, emphasized the bank's commitment to supporting local businesses through suitable financing instruments like bond issues. He noted that the investment project aligns with Terra Moretti's focus on innovation and sustainable growth.