04.10.2017

MANN+HUMMEL issues green bond

· First automotive supplier worldwide with green financing
· 400 million euros capital acquired
· Refinancing of "green" projects


Emese Weissenbacher, CFO at MANN+HUMMEL

Ludwigsburg/Germany, October 4, 2017 – the MANN+HUMMEL Group with headquarters in Ludwigsburg is the first automotive supplier worldwide with a green financing instrument, in this case a Green Schuldschein. MANN+HUMMEL with annual sales of approximately 3.5 billion euros is in the top thirty of the largest automotive suppliers in Germany.

MANN+HUMMEL, the filtration specialist with international operations has issued a Green Schuldschein and raised 400 million euros. The original target volume of 250 million euros was oversubscribed several times and therefore MANN+HUMMEL decided to increase the volume to 400 million euros. The bond is divided into tranches with terms from six to ten years which are respectively subject to a fixed or variable rate of interest. 

The BNP Paribas, ING and LBBW banks acted as facilitators and the Green  Schuldschein was certified by Sustainalytics, a leading independent provider of environmental, social and governance (ESG) research and ratings.

Emese Weissenbacher, CFO at MANN+HUMMEL is pleased about the success of the financing: "The Green Schuldschein was the ideal instrument for us to closely link the financing to our corporate strategy of ‘leadership in filtration’ while taking financial targets into account such as the improvement of the repayment structure, diversification of the investor base and greater financial flexibility."

"Filters are already a key component to improve our quality of life. It was a logical step for MANN+HUMMEL to issue a Green Schuldschein and the investors were happy to subscribe", reasoned Raoul Heßling, bond specialist at BNP Paribas, one of the banks which facilitated the transaction. The funds gained will be used to refinance products in the area of air and water filtration and projects in the area of renewable energy, sustainability and environmental protection which were previously financed by other means. 

Matthias Hoffmann, Corporate Debt Origination at Landesbank Baden-Württemberg emphasized: "A special aspect of this is the exclusively long‑term marketing of the bond with terms of between six and ten years, which due to the exceptionally stable and sustainable business model resulted in excellent feedback from investors".

"After the debut transaction in 2015, MANN+HUMMEL has again shown that the success can be repeated", added Klaus Pahle, Head of Schuldschein desk, ING Wholesale Banking Germany & Austria. "The Green Schuldschein has enabled us to attract new and, in particular, international investors."

Catarina da Silva, Senior Associate at Sustainalytics, said "MANN+HUMMEL's transaction is well-aligned with its long-term corporate strategy, which identifies sustainability as one of the key strategic drivers for business development. Given this background, we believe the Green Schuldschein will contribute to advancing MANN+HUMMEL’s commitment to improve its environmental performance."

MANN+HUMMEL received legal advice from Dr. Christian Jahn at the law firm Latham & Watkins LLB.

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Press photos:                   
https://www.mann-hummel.com/de/corp/aktuelles/pressebilder/

Press contacts:     
Miriam Teige, Manager Corporate Communications
Tel.:     +49 7141 983354
            +49 152 547046 99
Email: miriam.teige@mann-hummel.com

Alexandra Jordans
Media Relations / Corporate Communications
ING Wholesale Banking
Tel.:     +49 69 2722266710
            +49 151 16122589
Email: alexandra.jordans@ing-diba.de

Second opinion document:
http://www.sustainalytics.com/wp-content/uploads/2017/08/MannHummel-Green-SSD-Framework-_Second-Opinion-by-Sustainalytics_Final.pdf

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About MANN+HUMMEL

MANN+HUMMEL is a leading global expert for filtration solutions. The company group with its headquarters in Ludwigsburg, Germany, develops solutions for motor cars, industrial applications, clean air in interior spaces and the sustainable use of water. In 2016 the group achieved sales of approx. 3.5 billion euros worldwide with more than 20,000 employees at more than 80 locations. The products manufactured by the group include air cleaner systems, intake manifold systems, liquid filter systems, plastic components, filter media, cabin filters, industrial filters and membrane filters.

Further information on MANN+HUMMEL is available at http://www.mann-hummel.com

About ING Wholesale Banking Germany

ING Wholesale Banking Germany comprises the corporate clients business of ING-DiBa AG and is part of the ING Group’s worldwide Wholesale Banking network with offices in more than 40 countries. ING Wholesale Banking offers banking services for large, internationally operating corporate clients. In addition to traditional banking products such as Corporate Lending and Transaction Services, ING is a world leading name in structured & project financing concepts, complemented by capital market solutions. ING Wholesale Banking Germany has approximately 300 employees based in the headquarters Frankfurt am Main who were in charge of a credit volume of EUR 25.9 billion by the end of 2016.

More information about ING Wholesale Banking Germany: www.ing.de 

About BNP Paribas in Germany

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 74 countries, with more than 192,000 employees, including more than 146,000 in Europe. The BNP Paribas Group has been active in Germany since 1947 and has successfully positioned itself on the market with thirteen companies. Private customers, companies and institutions are looked after by roughly 5,000 employees in all relevant economic regions all over the country. The wide-ranging products and services offered by BNP Paribas are almost identical to that of an universal bank.
www.bnpparibas.de

About Landesbank Baden-Württemberg (LBBW)

Landesbank Baden-Württemberg (LBBW) is both a medium-sized universal bank and the central bank of the savings banks in Baden-Württemberg, Saxony and Rhineland-Palatinate. Its core activities are the business with corporate customers, in particular small and medium-sized enterprises, private customer business, and German Sparkassen savings banks. A further focus is placed on real-estate financing as well as the customer-oriented capital market business with banks, German Sparkassen savings banks and institutional investors. LBBW is one of the market leaders in the issuance and placement of capital market instruments for years - especially in the bonds segment.

About Sustainalytics

Sustainalytics is an independent ESG and corporate governance research, ratings and analysis firm supporting investors around the world with the development and implementation of responsible investment strategies. With 13 offices globally, Sustainalytics partners with institutional investors who integrate environmental, social and governance information and assessments into their investment processes. Today, the firm has more than 300 staff members, including 170 analysts with varied multidisciplinary expertise of more than 40 sectors. Through the IRRI Survey, investors selected Sustainalytics as the best independent responsible investment research firm for three consecutive years, 2012 through 2014, and in 2015 and 2016 Sustainalytics was named among the top three firms for both ESG and Corporate Governance research. For more information, visit www.sustainalytics.com.