Equita assisted OVS in the placement of Euro 160 million Sustainability-Linked Bond

Equita assisted OVS

Milan, 4 November 2021 – OVS – leading company in the Italian women’s, men’s and kids’ apparel market – announced to have successfully completed the placement of senior unsecured notes and that an aggregate principal amount of Euro 160 million of bonds was underwritten.

The issue qualifies as sustainability-linked bond and foresees a step-up mechanism on interest rates if one or more of the three sustainability targets announced by the company should not be reached by 2024. The interest rate and the gross annual yield of bonds is 2.25% on an annual basis and the maturity is 6 years.

OVS will use the proceeds of the bond issue to further improve the group’s financial structure, the latter already strengthened by the recent capital increase completed in July 2021, and to reduce the cost of current indebtedness.

Equita, with a dedicated team of Global Financing and jointly with the trading floor, assisted OVS as Placement Agent and appointed intermediary to offer and display the notes for sale on the MOT.

Thanks to this transaction, Equita confirms its successful track-record in the placement of corporate bonds in Italy and, more generally, in the assistance to Italian issuers to access capital markets.

OVS S.p.A. is the leading company in the Italian women’s, men’s and kids’ apparel market. Under OVS and UPIM brands it counts over 1,800 stores in Italy and overseas. OVS was floated on the Italian Stock Exchange in March 2015 and with net sales of 1,018.5 million euros. The Group operates with a business model typical of vertically-integrated retailer including the following activities: product development entrusted to a team of product managers, designers and merchandisers who – by relying on a structure that is highly specialised in sourcing and has a major presence in key geographical areas – designs, develops and creates the merchandise mix through external suppliers. This process takes place under the artistic guidance of fashion coordinators and under the organisational leadership of product directors.