Aurubis AG continues to emphasize sustainability in financing
Hamburg | Tuesday, February 1, 2022
- Multimetal provider takes out a € 350 million ESG-linked syndicated credit line over five years
- Loan conditions are tied to the company’s EcoVadis rating
- Facility agents Deutsche Bank, LBBW, and UniCredit coordinated the loan
Sustainable conduct and business activity are integral components of Aurubis AG’s strategy – and this is continuing in the company’s financing as well. Yesterday, the multimetal provider signed a syndicated loan that is guided by the company’s ESG (environmental, social, and governance) targets.
The new € 350 million syndicated credit line, with the option of increasing it by up to € 150 million, has a term of five years and can be extended twice, in each case by one year. With this loan, Aurubis is prematurely replacing an existing syndicated loan that had a term until 2023. Aurubis is linking the new financing to its rating from the sustainability rating platform EcoVadis. Currently, Aurubis has Platinum status with 73 of 100 points and thus belongs to the top one percent of companies in the global non-ferrous metals industry. The syndicated loan was coordinated by Deutsche Bank, Landesbank Baden-Württemberg, and UniCredit. In June 2020, Aurubis was the first company in this industrial sector to successfully place a Schuldschein loan of € 400 million with a sustainability component.
Rainer Verhoeven, Chief Financial Officer (CFO) of Aurubis AG, asserts,
The ESG-linked syndicated loan emphasizes that sustainability continues to extend even as far as the financing structures at Aurubis. As the most sustainable smelter network in the world, we connect our financing conditions to our strategic business activities. This approach is more proof that we at Aurubis are intensively working on expanding our industry leadership in sustainability, allowing ourselves to be evaluated by our own standards.
Aurubis’ sustainability achievements are highlighted in EcoVadis’ annual assessment and directly influence the calculation of the interest expense for the syndicated loan. When the rating improves, the multimetal provider has a more favorable interest rate for the credit line; if the number of points in the rating declines, the interest rate increases.
The assessment methods used by EcoVadis are based on international sustainability standards and are monitored by an international scientific committee made up of CSR and supply chain experts.
The purpose of the credit line is general company financing, particularly as a reserve for potential liquidity fluctuations.
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