Dürr AG issues another sustainability Schuldschein loan with 0.9% interest rate

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Dürr AG issues another sustainability Schuldschein loan with 0.9% interest rate

– Early redemption of older Schuldschein tranches at improved terms
– Sustainability-oriented financing course continued
– Target amount fully subscribed

Dürr AG has successfully issued another sustainability-oriented Schuldschein loan to the tune of € 115 million. As was the case with the sustainability Schuldschein loan issued last year (€ 200 million), the interest rate is linked to the Dürr Group’s sustainability rating. With an average interest rate of 0.9%, Dürr AG was once again able to secure attractive terms for the new Schuldschein loan, despite the conditions in capital markets having recently become more challenging amid the coronavirus crisis.

The total amount of € 115 million will accrue to Dürr AG in April, divided into tranches with maturities of five, seven and ten years. The proceeds will be largely used to pay off the variable tranches (€ 100 million) of an older Schuldschein loan, which was issued in 2016 and has an average interest rate of 1.6%. Says Ralf W. Dieter, CEO of Dürr AG: “The new Schuldschein loan enables us to optimize our Group financing in terms of maturities and interest rates. Plus, we are boosting our sustainability profile while remaining a pioneer in sustainable finance.”

Despite the challenging circumstances, Dürr AG was able to secure the target transaction amount in full. The Schuldschein loan was subscribed by major international banks as well as by regional savings and cooperative banks.

Opting for a sustainability Schuldschein loan was a way to target investors who attach importance not only to economic performance but also to sustainable business operations. In June 2019, based on the same pattern, Dürr AG issued the world’s very first sustainability-oriented Schuldschein loan (€ 200 million). For both of these sustainability Schuldschein loans, the interest rates rise or drop depending on whether the Dürr Group’s sustainability rating improves or decreases. The rating, prepared by the EcoVadis agency, takes into account, for example, key sustainability figures such as CO2 emissions and water consumption and aspects such as fair working relationships as well as conditions at suppliers.

The lead arrangers were DZ BANK AG, LBBW and UniCredit. The Schuldschein loan was in part issued via the DEBTVISION digital platform. Dürr AG received legal support from the Freshfields Bruckhaus Deringer law firm.

Read the Dürr press release here:
Press release of Dürr

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