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