June 11, 2020 / 2:31 PM / a month ago

Italy signs off on 100 mln euro state-backed loan for OVS

MILAN, June 11 (Reuters) - Italian high-street clothing retailer OVS has been officially granted state guarantees on a 100 million euro loan, in the first financing of a large company under emergency liquidity measures deployed by the government to fight the virus crisis.

The loan, which falls into a category reserved for companies with more than 5,000 employees in Italy and revenues worth more than 1.5 billion euros, will be granted by a group of banks led by UniCredit.

“It’s the first loan of the ‘Garanzia Italia’ programme,” said Francesco Giordano, UniCredit’s co-CEO for Western Europe.

Italy’s Treasury said in a note OVS had a strategic relevance for Italy where it employed more than 7,600 people, with another 4,000 working for suppliers and other firms connected to the group.

Under the terms of the financing, OVS won’t distribute or approve dividends in 2020 and will handle any job redundancies through accords with unions for the duration of the loan.

Reporting by Valentina Za, editing by Giulia Segreti

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