Italy

Two Financial Institutions currently invest or make available an estimated USD$ 2,248.42 million in nuclear weapons companies. Two Financial institutions have policies on nuclear weapons- one is in the Hall of Fame, and one is in the Runners-up.

Banca Etica (Hall of Fame)

Banca Etica is an Italian cooperative bank that operates exclusively in the field of sustainable, alternative finance. Banca Etica has developed partnerships with institutes and organisations throughout Europe to develop civil economy, ethical finance and fair trade1

 

Article 5 of its founding charter states that “any and all financial relations with the economic activities that, even in an indirect manner, inhibit the human development and contribute to fundamental human rights violations are excluded.2 In its 2012 annual report Banca Etica clearly states that it does not want to get involved with anything having to do with weapons. This rule also applies to shareholders: the directors’ report raised concerns that two shareholders, Banca Popolare di Milano and Banca Popolare dell’Emilia Romagna, are now on a list of banks related to conventional3 arms production and sales4 Banca Etica has indicated that they are currently in discussion with Banca Popolare di Milano and Banca Popolare dell’Emilia Romagna to address these outstanding concerns.

UniCredit (Runner-Up)

UniCredit is a major Italian banking group, active in 22 European countries. It provides retail, corporate, investment banking and private banking services5 UniCredit Group’s position statement on the defence/weapons industry states that UniCredit, abstains from financing transactions involving manufacturing, maintaining or trading in controversial/ unconventional products such as nuclear weapons. Any involvement of UniCredit in business transactions concerning weapons is restricted to countries that comply with the most important international Treaties and Conventions6 In its 2012 sustainability report UniCredit explains that, in 2012, it has worked to improve the application of these criteria across it different UniCredit legal entities, but does not elaborate on the scope or the result of this commitment7

 

The current application of UniCredit’s policy does not preclude it from investing in numerous nuclear weapons producers. The policy furthermore is generally worded and lacks clarity on the scope of application and implementation. We commend UniCredit for their policy and encourage them to further strengthen the policy so they may be listed in the Hall of Fame in our next report.

Loans

In April 2011, EADS secured a five-year revolving credit facility with a value of € 3,000 million (US$ 4,345.3 million), at a base rate of EURIBOR+37.500bps. The proceeds were used for refinancing and for general corporate purposes. UniCredit participated in the 39-bank syndicate, committing an estimated amount of US$ 111.4 million8

 

In March 2011, Honeywell International secured a five-year revolving credit facility with a value of US$ 2,800 million. The proceeds were used for general corporate purposes. UniCredit participated in the 29-bank syndicate, committing anamount of US$ 50 million9

 

In September 2012, Northrop Grumman secured a US$ 500 million revolving credit facility due September 2013 at a base rate of LIBOR+75.000bps. The proceeds were used for refinancing bank debt and general corporate purposes. UniCredit participated in the 28-bank syndicate, committing an estimated amount of US$ 12.5 million10

 

In December 2010, Thales secured a five-year revolving credit facility with a value of € 1,500 million (US$ 1,978.6 million). The proceeds were used to refinance a loan which was due to mature in December 2011 and for general corporate purposes. UniCredit participated in the 20-bank syndicate, committing an estimated amount of US$ 87.9 million11

Investment banking

In May 2013, Northrop Grumman issued bonds with a total value of US$ 2,850 million. The issue was split in three tranches: a US$ 1,050 million3.250% tranche due August 2023, a US$ 950 million4.750% tranche due June 1943 and a US$ 850 million1.750% tranche due June 2018. The proceeds were used for reducing indebtedness, future acquisitions, working capital, stock repurchase and general corporate purposes. UniCredit participated in the 26-bank syndicate,underwriting an estimated amount of US$ 35.6 million12

 

In February 2012, ThyssenKrupp issued bonds with a total value of € 1,250 million (US$ 1654.3 million) with an interest rate of4.375% due February 2017. The proceeds were used for general corporate purposes. UniCredit participatedin the syndicate of four banks, underwriting an estimated amount of US$ 413.6 million13

 

In February 2013, ThyssenKrupp issued bonds with a total value of € 1,250 million (US$ 1669.6 million) with an interest rate of4.000% due August 2018. The proceeds were used for general corporate purposes. UniCredit participatedin the syndicate of four banks, underwriting an estimated amount of US$ 417.4 million14

 

In March 2013, ThyssenKrupp issued bonds with a total value of € 350 million (US$ 456.8 million) with an interest rate of4.000% due August 2018. The proceeds were used for general corporate purposes. UniCredit participatedin the syndicate of two banks, underwriting an estimated amount of US$ 228.4 million15

Asset management

Table 1 provides an overview of the nuclear weapon companies in which UniCredit owns or manages 0.50% or more of the outstanding shares at the most recent available filing date.

Table 1         Shareholdings of UniCredit

Company Country % of all outstanding shares Value (US$ mln) Filing date (range)
Thales France 0.97 84.82 31-Mar-2013 until 30-Apr-2013

Source: Thomson ONE Banker, “Share ownership”, Thomson ONE Banker (www.thomsonone.com), viewed July 2013.

Intesa Sanpaolo

Intesa Sanpaola currently has an estimated USD$ 819.30 million invested or available for the nuclear weapons producers identified in this report.

Loans

In June 2011, Bechtel signed a five-year revolving credit facility with a value of US$ 2,500 million. The facility is split in two tranches: a US$1,550 million letter of credit and a US$ 950 million revolver. The proceeds would be used to refinance debt and for working capital purposes. IntesaBci, a subsidiary of Intesa Sanpaolo, was part of the syndicate of 24 banks, and committed an estimated amount of US$ 75 million16

 

In November 2010, Boeing secured a one-year revolving credit facility with a value of US$ 2,376 million. The proceeds were used to refinance the loan from November 2009 and for general corporate purposes. Intesa SanPaolo was part of the syndicate of 37 banks, participating with an estimated amount of US$ 40.7 million17

 

In December 2011, Boeing entered into a US$ 4,600 million revolving credit facility. The facility was split in two tranches: a one-year US$ 2,300 million tranche at a base rate of LIBOR+82.500bps, which replaced the loan secured in November 2010,and a five-year US$ 2,300 million tranche at a base rate of LIBOR+79.500bps.The proceeds were used for refinancing bank debt and general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participatedin the syndicate of 35 banks, providing an estimated amount of US$ 83.6 million18

 

In April 2011, EADS secured a five-year revolving credit facility with a value of € 3,000 million (US$ 4,345.3 million), at a base rate of EURIBOR+37.500bps. The proceeds were used for refinancing and for general corporate purposes. Intesa SanPaolo participated in the 39 bank syndicate, committing an estimated amount of US$ 111.4 million19

 

In March 2011, Honeywell International secured a five-year revolving credit facility with a value of US$ 2,800 million. The proceeds were used for general corporate purposes. Intesa SanPaolo participated in the 29 bank syndicate, committing anamount of US$ 100 million20

 

In April 2012, Honeywell International secured a US$ 3,000 million revolving credit facility due April 2017. The proceeds were used for refinancing bank debt and general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participated in the 16 bank syndicate, committing an estimated amount of US$ 182.1 million21

 

In September 2012, Northrop Grumman secured a US$ 500 million revolving credit facility due September 2013 at a base rate of LIBOR+75.000bps. The proceeds were used for refinancing bank debt and general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participated in the 28 bank syndicate, committing an estimated amount of US$ 12.5 million22

 

In December 2010, Thales secured a five-year revolving credit facility with a value of € 1,500 million (US$ 1,978.6 million). The proceeds were used to refinance a loan which was due to mature in December 2011 and for general corporate purposes. Intesa SanPaolo participated in the 20 bank syndicate, committing an estimated amount of US$ 87.9 million23

Investment banking

In July 2011, Boeing Capital Corporation, a subsidiary of Boeing, issued bonds for a total value of US$ 750 million. The issue was split in two tranches: a US$ 500 million 2.125% tranche due August 2016 and a US$ 250 million 2.900% tranche due August 2018. The proceeds were used for general corporate purposes and to reduce indebtedness. Banca IMI, a subsidiary of Intesa Sanpaolo, participatedin the syndicate of 31 banks, underwriting anamount of US$ 7.5 million24

 

In April 2013, Boeing issued bonds with a total value of US$ 350 million with an interest rate of0.950% due November 2018. The proceeds were used for general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participatedin the syndicate of 26 banks, underwriting an estimated amount of US$ 4 million25

 

In September 2011, Fluor issued bonds with a total value of US$ 500 million with an interest rate of3.375% due September 2021. The proceeds were used for general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participatedin the syndicate of 17 banks, underwriting anamount of US$ 15 million26

 

In February 2011, Honeywell International issued bonds with a total value of US$ 1,400 million. The issue was split in two tranches: a US$ 800 million4.250% tranche due March 2021 and a US$ 600 million5.375% tranche due March 2041. The proceeds were used for reduce indebtedness and general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participated in the 14 bank syndicate,underwriting anamount of US$ 14 million27

 

In November 2010, Northrop Grumman issued bonds with a total value of US$ 1,500 million. The issue was split in three tranches: a US$ 500 million 1.850% tranche due November 2015, a US$ 300 million 5.050%tranche due November 2040 and a US$ 700 million 3.500% tranche due March 2021. The proceeds were used for general corporate purposes, to reduce indebtedness and for working capital. IMI Securities, a subsidiary of Intesa Sanpaolo, participated in the 12 bank syndicate,underwriting anamount of US$ 50 million28

 

In May 2013, Northrop Grumman issued bonds with a total value of US$ 2,850 million. The issue was split in three tranches: a US$ 1,050 million3.250% tranche due August 2023, a US$ 950 million4.750% tranche due June 2043 and a US$ 850 million1.750% tranche due June 2018. The proceeds were used for reducing indebtedness, future acquisitions, working capital, stock repurchase and general corporate purposes. Banca IMI, a subsidiary of Intesa Sanpaolo, participated in the 26 bank syndicate,underwriting an estimated amount of US$ 35.6 million29

References


  1. Banca Etica, “Banca Etica Idea and Principles”, “Banca Etica In Europe”, available at http://www.bancaetica.it/idea-and-principles), last viewed July 2013. 

  2. Banca Etica, “Banca Popolare Etica, Lo Statuto” (“Banca Popolare Etica, the Statute”), available at http://www.bancaetica.com/Content.ep3?CAT_ID=31844&ID=770990, last viewed 10 April 2012. 

  3. Clarified in an email from Andrea Baranes at Banca Etica, 10 August 2013. 

  4. The Economist, 1st June 2013, “Ethical banking in Italy: Banca Etica; A bank that takes its name seriously,” available on http://www.economist.com/news/finance-and-economics/21578691-bank-takes-its-name-seriously-ethical-banking-italy, last viewed July 2013. 

  5. UniCredit, “Banking Groupe”, available at https://www.unicreditgroup.eu/en/banking-group.html, last viewed July 2013.. 

  6. UniCredit, “UniCredit Position Statement on Defense/Weapons Industry”, available at https://www.unicreditgroup.eu/en/sustainability/updates—resources.html#, last viewed July 2013. 

  7. UniCredit, “Sustainability report 2012”, p.13, available at https://www.unicreditgroup.eu/en/sustainability/updates—resources.html#, last viewed July 2013. 

  8. Thomson ONE Banker, “Tearsheet 2705573115”, Thomson ONE Banker (www.thomsonone.com), 14 April 2011; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011. 

  9. Honeywell International, “Five “Year Credit Agreement”, Honeywell International, 31 March 2011; Thomson ONE Banker, “Tearsheet 2706948115”, Thomson ONE Banker (www.thomsonone.com), 31 March 2011; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011. 

  10. Thomson ONE Banker, “Tearsheet 2886058116”, Thomson ONE Banker (www.thomsonone.com), 04 September 2012. 

  11. Thomson ONE Banker, “Tearsheet 2674952115”, Thomson ONE Banker (www.thomsonone.com), 17 December 2010; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011. 

  12. Thomson ONE Banker, “Tearsheet 2525118001, 2525403001 and 2525406001”, Thomson ONE Banker (www.thomsonone.com), 28 May 2013. 

  13. Thomson ONE Banker, “Tearsheet 2390122006”, Thomson ONE Banker (www.thomsonone.com), 21 February 2012. 

  14. Thomson ONE Banker, “Tearsheet 2497132006”, Thomson ONE Banker (www.thomsonone.com), 18 February 2013. 

  15. Thomson ONE Banker, “Tearsheet 2501620006”, Thomson ONE Banker (www.thomsonone.com), 05 March 2013. 

  16. Bloomberg Database, “Loan finder”, Bloomberg Database, viewed July 2013; Thomson ONE Banker, “Tearsheet 2758129115”, Thomson ONE Banker (www.thomsonone.com), 2 June 2011. 

  17. Thomson ONE Banker, “Tearsheet 2645490115”, Thomson ONE Banker (www.thomsonone.com), 12 November 2010; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011; The Boeing Company, “364-Day Credit Agreement”, The Boeing Company, 12 November 2010. 

  18. Thomson ONE Banker, “Tearsheet 2900612116 and 2900613116”, Thomson ONE Banker (www.thomsonone.com), 12 December 2011. 

  19. Thomson ONE Banker, “Tearsheet 2705573115”, Thomson ONE Banker (www.thomsonone.com), 14 April 2011; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011. 

  20. Honeywell International, “Five “Year Credit Agreement”, Honeywell International, 31 March 2011; Thomson ONE Banker, “Tearsheet 2706948115”, Thomson ONE Banker (www.thomsonone.com), 31 March 2011; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011. 

  21. Thomson ONE Banker, “Tearsheet 2835497116”, Thomson ONE Banker (www.thomsonone.com), 02 April 2012. 

  22. Thomson ONE Banker, “Tearsheet 2886058116”, Thomson ONE Banker (www.thomsonone.com), 04 September 2012. 

  23. Thomson ONE Banker, “Tearsheet 2674952115”, Thomson ONE Banker (www.thomsonone.com), 17 December 2010; Bloomberg Database, “Loan finder”, Bloomberg Database, viewed November 2011. 

  24. Thomson ONE Banker, “Tearsheets 2332822001 and 2332945001”, Thomson ONE Banker (www.thomsonone.com), 28 July 2011; Bloomberg Database, “Corporates by ticker”, Bloomberg Database, viewed November 2011. 

  25. Thomson ONE Banker, “Tearsheet 2517586001”, Thomson ONE Banker (www.thomsonone.com), 30 April 2013. 

  26. Thomson ONE Banker, “Tearsheet 2343193001”, Thomson ONE Banker (www.thomsonone.com), 08 September 2011. 

  27. Honeywell International, “Prospectus supplement: $800,000,000 4.250% Senior Notes Due 2021, $600,000,000 5.375% Senior Notes Due 2041”, Honeywell International, 14 February 2011; Bloomberg Database, “Corporates by ticker”, Bloomberg Database, viewed November 2011; Thomson ONE Banker, “Tearsheets 2280086001 and 2280355001”, Thomson ONE Banker (www.thomsonone.com), 14 February 2011. 

  28. Thomson ONE Banker, “Tearsheet”, Thomson ONE Banker (www.thomsonone.com), 01 November 2010. 

  29. Thomson ONE Banker, “Tearsheet 2525118001, 2525403001 and 2525406001”, Thomson ONE Banker (www.thomsonone.com), 28 May 2013. 

This page contains country specific information from the 2013 Don’t Bank on the Bomb report. It identifies which financial institutions have significant financing relationships with one or more of the 27 nuclear weapons producers.

The financial institutions identified include banks, pension funds, sovereign wealth funds, insurance companies and asset managers. They have provided various types of financial services to nuclear weapon companies. The most important are loans, investment banking and asset management.

All sources of financing provided since 1 January 2010 to the companies listed were analysed from annual reports, financial databases and other sources. The financial institutions which are most significantly involved in the financing of one or more nuclear weapon companies are shown here. See the full report for both a summary and full description of all financial institutions which are found to have the most significant financing relationships with one or more of the selected nuclear weapon companies, by means of participating in bank loans, by underwriting share or bond issues and/or by share- or bondholdings (above a threshold of 0.5% of all outstanding shares or bonds).