The participation of up to €80 million in a six-year tranche of a leading automotive technology company Faurecia S.E.'s environmental, social and governance - ESG linked Schuldschein issuance, a privately placed unsecured debt governed by the German law, to finance Faurecia investments in Morocco, Poland, Romania and Tunisia.
The project will contribute to the decarbonisation of the automotive supply chain and Faurecia's objective to achieve climate targets formulated in line with the Science-Based Targets Initiative, to become CO2 neutral for its internal emissions across all of its sites by 2025 (Scopes 1&2). The project will also finance growth capex in Faurecia's manufacturing sites in Romania, Morocco and Tunisia.
ETI score: 64
The transition impact is derived from the Green and Inclusive qualities. Under the Green quality, the Project will support Faurecia's decarbonisation targets in Poland and Romania. Under the Inclusive quality, Faurecia will enhance access to digital skills and skills for automation for its workforce in Morocco to address an emerging skills demand for technologically sophisticated, more highly automated production lines.
Faurecia, headquartered in France, is a global automotive Tier-1 supplier listed on Euronext Paris stock exchange.
EBRD Finance Summary
The proceeds of the Bank's financing will be used exclusively to support Faurecia's 2022-2026 investments in Morocco, Poland, Romania and Tunisia. These include R&D for electric vehicles and renewable energy generation through power purchase agreements (PPAs) in Poland and Romania, eligible under the Bank's Green Economy Transition (GET) approach. The proceeds of the Bank's tranche will also finance growth capex in Faurecia's manufacturing sites in Romania, Morocco and Tunisia.
Total Project Cost
The EBRD's participation allows the company to accelerate its decarbonisation programme in the Bank's countries of operation. In addition to that, part of the Bank's financing will be directed towards Foreign Direct Investment (FDI) to support investments in SEMED countries (Morocco and Tunisia) where transition gaps are higher.
Environmental and Social Summary
Category B (2019 ESP) and Low Medium Risk.
This capital markets transaction is with a client well known to the Bank. Previous due diligence has shown that the Company has EHSS risk management systems and procedures at the corporate and operational level which are aligned with the Bank's Performance Requirements. Due diligence on this transaction involved a review of information supplied by the client, in particular a breakdown of the proposed use of proceeds. In addition, publicly available information on EHSS issues was reviewed including the client's 2020 Integrated Report and 2021 Sustainability Guide. At the corporate level, the Company continues to maintain appropriate risk management objectives and procedures. Previous due diligence has shown that the corporate level procedures are implemented at the country and site level and that the company monitors EHSS performance at an appropriate level of detail and that the corporate standards apply to employees, contractors and supply chains as appropriate. The client has confirmed on previous projects that use of the Bank's proceeds would occur in compliance with the PRs and a similar commitment is being sought in this case. Review of the client operations, and the proposed project, has shown that the project is Paris Aligned in relation to adaptation.
Company Contact Information
Selim Hadj-Smail, Faurecia VP Group Financing & Treasury
+33 (0)6 24 44 42 95
Faurecia S.E., 23-27 avenue des Champs Pierreux, 92000 Nanterre, France
PSD last updated
11 Jan 2022
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