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ANOTHER SOFT LOAN FOR PIAGGIO

Piaggio Group has signed an additional £27.4m loan contract with the European Investment Bank (EIB), to pay for R&D projects. It follows a previous borrowing arrangement agreed last year, taking the EIB’s overall commitment to Piaggio for R&D set out in its investment plan across the 2019-2021 period to £91.2m.

The EIB is collectively owned by EU member states and splashes their money around in pursuit of “EU policy goals”. These apparently include enhancing Piaggio’s scooter, motorcycle and commercial vehicle lines.

This latest tranche of EIB funding, notionally repayable over seven years, is for projects to be conducted at Piaggio Group sites in Italy through 2021. Specifically, it will support development of technological product and process solutions in active and passive safety, and sustainability, such as electric motors and reduction of fuel consumption in internal combustion engines.

Piaggio notes that EIB generosity will also enable the company to further strengthen its financial structure, by extending average debt life and reducing average borrowing costs.

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