- First syndicated loan of EUR 750 million finalized
- New credit facility is tied to sustainability rating
Knorr-Bremse AG is breaking new ground, even when it comes to financing. The global market leader for braking systems and leading supplier of other safety-critical rail and commercial vehicle systems has just concluded its first-ever syndicated loan. Additionally, a sustainability component was included in the structure of the credit facility.
Frank Markus Weber, Chief Financial Officer of Knorr-Bremse AG: “With this syndicated loan, we are expanding the tools at our disposal for long-term financing and modifying our previous strategy, which was characterized by short-term bilateral credit lines combined with long-term capital market instruments. We have thus secured ourselves credit over the long term in an attractive market environment and, with this ESG-linked loan as a green financing element, have taken up a sustainable instrument into our financing structure.”
The syndicated loan of EUR 750 million has a term of five years and can be extended by one year up to two times. Knorr-Bremse has tied the new financing to an ESG rating by ISS Corporate Solutions, who currently has Knorr-Bremse AG at a solid rating of C+. Within the framework of a bonus–malus system, changes to this rating have a corresponding positive or negative impact on the loan spread.
The transaction was coordinated by Deutsche Bank and UniCredit.
Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market leader for braking systems and a leading supplier of other safety-critical rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. About 29,700 employees at over 100 sites in more than 30 countries use their competence and motivation to satisfy customers worldwide with products and services. In 2020, Knorr-Bremse’s two divisions together generated revenues of EUR 6.2 billion. For 115 years the company has been the industry innovator, driving innovation in mobility and transportation technologies with an edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: Urbanization, sustainability, digitalization and mobility.
Knorr-Bremse AG
Moosacher Straße 80
80809 München
Telefon: +49 (89) 3547-0
Telefax: +49 (89) 3547-2767
http://www.knorr-bremse.de
Head of Corporate Communications
Telefon: +49 (89) 3547-1402
E-Mail: alexandra.bufe@knorr-bremse.com
