A sustainability component in financing
We have made a name for ourselves as a pioneer in ‘green’ financing.
Since 2019 we have been linking all elements of our corporate financing to a sustainability component. This means that, depending on how we score in the ESG categories of Environmental, Social and Governance, our financing costs will either decrease or increase.
EcoVadis rating as a benchmark for sustainability
We have linked several financing instruments to the development of our sustainability rating. This is how ecologically and socially responsible business operations also have a financial pay-off for us, for example through reduced interest rates or avoided compensation payments.
The sustainability rating prepared by the EcoVadis rating agency is applicable. In its assessment, EcoVadis considers the categories of environment, labor and human rights as well as integrity and procurement. The respective scores are weighted differently in the final result, taking into account the sector to which a company belongs. The 21 assessment criteria make up a maximum score of 100 points. Some of the aspects taken into account are energy and water consumption, CO2 emissions as well as anti-corruption and social practices of suppliers.
Gold status by October 2024
With our current score of 55 points, we are among the top 25% of all the companies rated by EcoVadis. Our goal is to achieve a score of 66 points by October 2024, which is equivalent to a gold status. We would thus rank among the best 5% of all companies assessed by EcoVadis.
- Interest rate mechanism: If we improve our sustainability rating to at least 62 points, we will benefit from an interest rate that is 2 basis points more favorable for certain financing instruments. If, on the other hand, our sustainability score drops to 40 points or lower, our interest rate will increase accordingly.
- Compensation payments: If our sustainability rating does not improve within the agreed scope, we will be obliged to pay a surcharge of 2 basis points to UniCredit Bank AG for certain financing instruments. UniCredit Bank will use this money to support sustainable projects. The agreed improvement targets are: at least 62 points by October 2022 and at least 66 points by October 2024.
Convertible bond*
- In September 2020 we issued a convertible bond, to which we linked a sustainability component in the form of a separate interest derivative.
- The interest derivative is linked to our EcoVadis sustainability rating.
- If we do not achieve the specified ratings improvements, we will have to pay a fixed sum to UniCredit Bank AG.
- The improvement targets are: at least 62 points by October 2022 and at least 66 points by October 2024.
- Term: 5.3 years
- Coupon: 0.75%
- Conversion premium: 40%
* The convertible bond has been placed with qualified institutional buyers (QIBs) only and the information above does not constitute an offer or a solicitation of an offer to purchase securities of the Company or any of its subsidiaries in the United States of America, Germany or any other jurisdiction.
Sustainability Schuldschein loans
- In June 2019 we were the world's first company to issue a sustainability-oriented Schuldschein loan for € 200 million.
- In March 2020 we issued an additional sustainability Schuldschein loan to the tune of € 115 million, also with a sustainability component.
- Issue of a third sustainability Schuldschein in the amount of € 200 million in December 2020.
- Interest rates are dependent on our EcoVadis sustainability ranking.
- Threshold for reducing the interest rate: 62 points
Syndicated loan with sustainability component
- Interest rate linked to the EcoVadis sustainability rating
- Threshold for reducing the interest rate: 62 points
- Maturity date: August 7, 2024
