Schaeffler AG places EUR 350 million green promissory note loan

Debut promissory note with a total volume of around EUR 350 million placed in a difficult market environment
Schuldschein comprises green tranches to refinance a portfolio of sustainable projects

The global automotive and industrial supplier Schaeffler has placed a promissory note loan for the first time and has thus been able to raise a total of around EUR 350 million in the currently difficult market environment. From the funds in the promissory note loan, 300 million euros are used exclusively to refinance a portfolio of sustainable projects in accordance with the Schaeffler Group's “Green Finance Framework”.

"This successful debut on the promissory note market in the currently very difficult environment is an important component of our financial strategy. The promissory note contributes to investor diversification and expands the current mix of financing instruments. It also strengthens the Schaeffler Group's solid liquidity position, ”says Dietmar Heinrich, CFO of Schaeffler AG.

With the green note tranches now placed, Schaeffler is refinancing a project portfolio with a focus on products for emission-free mobility such as electric motors and electric axles, as well as products for the climate-friendly generation of energy by wind power. In addition, investments in a more sustainable global production are refinanced by Schaeffler with a view to avoiding waste and wastewater as well as lower energy consumption. By the time the promissory note was issued, the full allocation of funds within the green project portfolio had already been achieved.

The promissory note transaction comprised tranches with terms of three, five and eight years. The tranches were offered with both fixed and variable interest rates. The transaction was marketed digitally via the vc trade financing platform and arranged by Bayern LB, Helaba, ING and UniCredit. ING also supported as a "Green Advisor".

The “Green Finance Framework” from Schaeffler AG and its independent assessment by Sustainalytics is available on the Schaeffler AG website: Schaeffler Group Green Finance