Investment of EUR 10 million in the first Sustainability Link Bond (SLB) issuance of EUR 48 million placed by Autonom in November 2021 and to be listed on the Bucharest Stock Exchange, as part of the company's 5-year EUR 250 million Corporate Bonds Offering Programme.
The funds from the bond issuance will be used to support the company's further growth by assisting it to expand its car fleet, in order to meet increasing demand from local companies. The proceeds will be used for general business purposes including: acquiring new vehicles to be used for expanding the operating leasing and short term rental business lines (the "Project").
By launching the Sustainability Link Bond issuance, Autonom signals its commitment to significantly reduce the carbon footprint of both its own vehicle fleet as well as its car leasing and renting operations (also by providing a solution to corporates to reduce their transport-related emissions) which is consistent with decarbonisation objectives of transport and corporate sectors in EU countries. The company has developed a Sustainability Strategy and Framework with a Sustainability Performance Target of a 25% reduction in the carbon intensity of the Company's fleet by 2025 from 2020 baseline, and by 51% by 2030. This target is considered to be ambitious compared to EU targets for 2025/2030.
ETI score: 63
The transition impact of the transaction stems from the Resilient and Green transition qualities
i) Resilient: The project contributes to the local capital markets development by supporting the first Sustainability Link Bond issuance in the country. The company issued EUR 48 million SLB with 5 year maturity, to be listed on the Bucharest Stock Exchange by end of 2021.
ii) Green: Autonom issued the bond in line with ICMA's SLB Bond Principles and will commit to Sustainability Performance Targets including a reduction by 25% of the average CO2 emissions until 2025 and by 51% by 2030. In order to achieve this reduction Autonom's action plan includes to increase the share of lower and zero emission vehicles in its fleet and improve vehicle efficiency.
AUTONOM SERVICES SA
Autonom Services S.A. ("Autonom", the "Company" or the "Issuer"), is one of the largest locally owned service providers of mobility and integrated automotive services, covering operating leasing, car fleet management and short term rental of vehicles. In 2018, Autonom became the first Romanian company to be included in the EBRD Blue Ribbon Programme due to its innovative business strategy. The company expanded organically as well as via aquisitions.
In 2020, Autonom reported revenues of EUR 68 million, a fleet of c. 8,500 cars and 313 employees.
In June 2021, Fitch Ratings affirmed the company's Long-Term Issuer Default Rating (IDR) at 'B+' and upgraded the outlook to stable from negative reflecting Autonom's financial resilience since the onset of the pandemic, notably regarding profitability, asset quality, funding and liquidity. Fitch Rates Autonom Services' MTN Program 'B(EXP)/RR5'.
EBRD Finance Summary
Total Project Cost
Additionality derives from the participation of the Bank in the first Sustainable Link Bond listed on the regulated market managed by the Bucharest Stock Exchange and the first corporate bonds offering progamme based on a base prospectus approved in Romania by the Romanian Financial Supervisory Authority. The participation of the EBRD is important to scale up the Company's fund raising effort and achieve a relevant size, as it is expected to incentivise other investors to buy in the bond. The listing on the BSE is a condition for the EBRD's investment.
Environmental and Social Summary
Categorised B (ESP 2019). Autonom is an existing client and has so far provided satisfactory environmental and social annual reporting. The transaction foresees the issuance of a Sustainability Linked Bond (SLB) and therefore, capital market rules apply. The environmental and social due diligence relied on publicly available information. The KPIs linked to the SLB are related to vehicle fleet decarbonisation. Autonom Services has a formal environmental management system in place as well as a health and safety management system compliant with the international standard OHSAS18001. The company has a health and safety action plan which is updated on an annual basis and also includes vehicle and driver safety. Staff are provided with health and safety training on an annual basis. The project has limited impacts to community, health, safety and security. The client will continue to apply the applicable PRs 1, 2 and 4 at the company level. An ESAP is not required. As for all capital market transactions, Cat. A projects are excluded as per ESP. The GET Share is 100%.
Company Contact Information
Str. Fermelor Nr. 4, Piatra Neamt, 610145
PSD last updated
01 Dec 2021
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Independent Project Accountability Mechanism (IPAM)
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