Leonardo S.p.A.

Capital/Financing Update • Oct 7, 2021

Informazione Regolamentata n. 0131-78-2021		Data/Ora Ricezione 07 Ottobre 2021 17:43:26	MTA
Societa'	:	LEONARDO
Identificativo Informazione Regolamentata	:	152786
Nome utilizzatore	:	LEONARDON04 - Micelisopo
Tipologia	:	2.2
Data/Ora Ricezione	:	07 Ottobre 2021 17:43:26
Data/Ora Inizio Diffusione presunta	:	07 Ottobre 2021 17:43:27
Oggetto	:	signed	Leonardo: first ESG-linked credit facility
Testo del comunicato

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Leonardo: first ESG-linked credit facility signed

• ESG indicators, in line with the Group's Sustainability at the basis of Leonardo's Industrial Plan, included for the first time
• Reduction of spreads compared to previous credit lines and extension of the maturity to 2026
• High oversubscription (185% of the requested loan) confirming Leonardo's solid creditworthiness

Rome, 7 October 2021 – Leonardo has signed a new Revolving Credit Facility, the first to be ESG linked, with a pool of international and national banks.

The ESG-linked Revolving Credit Facility ("ESG-RCF"), signed for € 2.4 billion, is divided into a tranche of € 1.8 billion with a maturity of 5 years and a tranche of € 600 million with a maturity of 3 years.

The new RCF replaces the two existing Revolving Credit Facilities, reducing the overall cost of funding available for the Group's financial needs and extending the maturity until 2026.

In line with both Leonardo Sustainability strategy, at the basis of the Industrial Plan, as well as the Long Term Incentive Plan, the RCF is linked for the first time to specific ESG indicators, including the reduction of CO2 emissions through the eco-efficiency of industrial processes and the promotion of women employment with degrees in STEM disciplines. These ESG parameters are also contributing to the achievement of the Sustainable Development Goals (SDGs), which are the basis of ca. 50% of the Group's investments.

The achievement of the targets linked to the ESG indicators will also activate a margin adjustment mechanism applied to the facility.

Alessandro Profumo, CEO, stated "The signing of the ESG-linked credit line confirms our commitment to Sustainability, an integral part of Leonardo's Industrial Plan and Long Term Incentive Plan, and is a further step forward in the Group's disciplined financial strategy. Favorable market conditions led us to sign this credit line in order to reduce further financial charges and maintain a significant source of liquidity, in line with the expectations of the financial markets and credit rating agencies. Linking the margin of RCF to the achievement of ESG objectives reflects our confidence in the Group's sustainable strategy and is part of Leonardo's path for the integration of economic and financial data and ESG targets."

Leonardo, a global high-technology company, is among the top world players in Aerospace, Defence and Security and Italy's main industrial company. Organized into five business divisions, Leonardo has a significant industrial presence in Italy, the United Kingdom, Poland and the USA, where it also operates through subsidiaries that include Leonardo DRS (defense electronics), and joint ventures and partnerships: ATR, MBDA, Telespazio, Thales Alenia Space and Avio. Leonardo competes in the most important international markets by leveraging its areas of technological and product leadership (Helicopters, Aircraft, Aerostructures, Electronics, Cyber Security and Space). Listed on the Milan Stock Exchange (LDO), in 2020 Leonardo recorded consolidated revenues of €13.4 billion and invested €1.6 billion in Research and Development. The company has been part of the Dow Jones Sustainability Index (DJSI) since 2010 and has been named as sustainability global leader in the Aerospace & Defence sector for the second year in a row of DJSI in 2020.

The new RCF has been signed by 26 banks and achieved total commitments oversubscribed for 4.4 billion euros; the success of the transaction confirms Leonardo's solid creditworthiness and the Sustainability path being pursued.

The banking pool that signed the ESG-RCF is composed of the following banks:

• Mandated Lead Arrangers and Bookrunners: Banco BPM S.P.A.; BNP Paribas (BNL Lender); BPER Banca S.p.A.; Credit Agricole Corporate and Investment Bank; Intesa Sanpaolo S.p.A.; SMBC Bank EU AG Milan Branch; Société Générale, Milan Branch; UniCredit.
• Lead Arrangers: Banca Monte dei Paschi di Siena S.p.A.; Barclays; BofA Securities; Commerzbank Aktiengesellschaft Filiale di Milano; Deutsche Bank AG; HSBC; MUFG Bank, Ltd. – Milano Branch; Santander.
• Co-Arrangers: BBVA S.A., Milan Branch; Banca Popolare di Sondrio Società Cooperativa per Azioni; Citi; Mediobanca – Banca di Credito Finanziario S.p.A.; Bank of China Limited Milan Branch; Crédit Industiel et Commercial; National Westminster Bank Plc; Natixis S.A., Milan Branch; JP Morgan AG; Banca Passadore & C.

Crédit Agricole Corporate and Investment Bank and UniCredit have assumed the role of ESG Coordinators. BNP Paribas has assumed the role of Documentation Agent and Intesa Sanpaolo S.p.A.will assume the role of Facility Agent.

For the signing, the pool of banks has been assisted by Linklaters and Leonardo by Clifford Chance as legal advisors.