Piaggio Group borrows €60m

The loan to the Piaggio Group is reported to be for supporting the resumption of activity and to support R&D projects

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THE Piaggio Group has received a loan of €60m to help it to resume production activities post-COVID-19.

The global health crisis has hit almost all major economies hard, with Italy being one of the hardest-hit EU nations. With large scale manufacturing and export taking place across the nation, the containment rules to keep COVID-19 isolated effectively crippled the nation.

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While business large and small starting to get back to normal in the nation, it seems that even Italy’s biggest and brightest need a little bit of help getting going again.

The loan was made in equal shares by two banks, the Banca Monte Dei Paschi di Siena (MPS) and the Cassa Depositi e Prestiti (CDP). The transaction follows one of the initiatives led by the two organizations to provide liquidity and support the resumption of production activities in Italy.

It’s claimed the loan was requested to support the investments planned by the Piaggio Group in the research and development and also help it resume production. Some of the money is to be used to research technological solutions and innovative products in areas such as safety and sustainability, with a view to strengthening its ranges of scooters, motorcycles, and commercial vehicles. Developments will focus in particular on reducing the consumption and emissions of internal combustion engines.

The Piaggio Group is the owner of the Piaggio, Vespa, Aprilia, Moto Guzzi, Gilera and Derbi brands. It’s HQ is Pontedera, Italy. In 2019 the group had a net income of nearly €50m.