Lenzing successfully places sustainable bonded loan of over Euro 500 million. For this type of loan, the interest is linked to Lenzing's performance in the area of sustainability and is annually reviewed and assessed by an independent sustainability agency. The MSCI agency, which undertakes the rating in Lenzing's case, recently awarded the company an A rating. The innovative and sustainability-based financing of a bonded loan is a consistent step in the implementation of its own corporate strategy “sCore TEN”, with a focus on sustainability and environmental protection.
The initial Euro 200 million bond was of such interest to investors from Europe and Asia that the decision was made to increase it to Euro 500 million. Nearly 12% of this ($65 million) was tendered in US dollars. The average interest rate of the loan is just under 1%, through which the Lenzing Group is financed less expensively than with previous bonded loans.
The total volume of the loan of Euro 500 million will be available to the Lenzing Group in December 2019 and in January 2020, and is further distributed over tranches with terms of five, seven and ten years. In addition, registered bonds will be put into place with a term of 15 years. The resources will be used for general corporate financing, for early refinancing of a bond tranche from 2015 and for important sustainable future projects by the Lenzing Group.
The transaction was arranged and structured by BNP Paribas, the Landesbank Baden-Württemberg and UniCredit. Parts of the bonded loan were tendered via the innovative digital platform Debtvision.
Source: Lesprom Network