Participation of EUR 25 million in the up to 10-year tranches of a EUR 350 million ESG-linked Schuldschein issuance by Fritz Draexlmaier GmbH & Co. KG, a German mittelstand company operating in the automotive sector with strong presence in the EBRD's countries of operations.
The Bank's financing will go towards e-mobility linked (GET) investments in Romania, Moldova and North Macedonia. This is in addition to supporting the ESG goals of the issuance which are supported by all investors and which are expressed as sustainability KPIs monitored at group level.
ETI score: 60
The transition impact of the project will derive from the Green quality: Through the use of proceeds the Bank will support the company's expansion in the e-mobility segment. The Bank's financing will support the company to accelerate the implementation of its low-carbon strategy at their Romanian, Moldovan and North Macedonian operations through the development and production of components essential for the electrification of transport (such as high voltage harnesses and battery systems which are used as components for electric vehicles).
FRITZ DRAXLMAIER GMBH AND CO KG
Fritz Draexlmaier GmbH & Co. KG, domiciled in Germany, is an international automotive supplier with about 65 sites in over 20 countries. It employs about 75,000 employees throughout the world of which a significant share in the Bank's COOs.
EBRD Finance Summary
By participating in the 10-year tranche, the EBRD supports the client's long-term investments into e-mobility in EBRD countries of operation. The client's commitment to green investments comes in addition to ESG commitments made by the client to general investors (as well as to the Bank) which set global targets for recycling, green energy and apprenticeships.
Furthermore, the Bank is participating in a ESG-linked "Schuldschein", an innovative financial instrument in the market and the first such instrument for the company. The issuance will have a strong demonstration impact for other companies in the sector and for capital markets in the Bank's countries of operations. The EBRD will benefit from the KPI reporting and margin step-up/step down mechanism along with other investors.
Environmental and Social Summary
Categorised C (ESP 2019). As this is a capital markets transaction Environmental & Social (E&S) Due Diligence has been undertaken by the Bank through of review of publicly available information, disclosures made by the Issuer and reporting provided by the client under previous transactions. ESDD has confirmed that Bank proceeds will be deployed for e-mobility technology investments at existing operational manufacturing sites, the risks and impacts of which are likely to be low and which can be further minimised through the implementation of the corporate level procedures which the Company has in place. The Bank has an established relationship with the Company, and it has been previously determined that the E&S capacity and management systems are satisfactory. The Company has established E&S management systems at the corporate level and sets EHS KPI's for their operational manufacturing sites. In line with the ESAP previously agreed with the Bank, the Company has certified the majority of their operational sites in EBRD countries of operations to the ISO 14001 standard, and is gradually implementing ISO 45000 certification. The E&S reporting to the Bank has been satisfactory to date, with most of ESAP actions completed. The Bank will continue to monitor the E&S performance through a combination of review of annual reporting and the Corporate Sustainability Report, and site visits as required.
Technical Cooperation and Grant Financing
Company Contact Information
Christian Anzinger, Group Treasurer
+49 8741 47- 0
Fritz Dräxlmaier GmbH & Co. KG Landshuter Str. 100 84137 Vilsbiburg GERMANY
PSD last updated
28 Oct 2021
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