A EUR 75 million participation in the long-term tranches of an ESG-linked Schuldschein by Valeo SE (the "Company"), a Societas Europaea incorporated and existing under the laws of France. The Bank's proceeds will support the Company's investments in Egypt, Tunisia and Turkiye.
The project will support Valeo's R&D efforts in Egypt as well as its green initiatives in Turkiye, contributing to achieving carbon neutrality by 2050. In particular, the use of proceeds will support: (i) the Group's R&D center in Egypt for developing software for Electric and Hybrid Vehicles, the site develops 50% of the Group's software production worldwide exporting 100% of its services across the globe; (ii) production of components for hybrid/electric vehicles (EVs) in Turkiye; and (iii) new capex in Tunisia to build a greenfield plant.
ETI score: 66
Primary quality - Competitive:The EBRD proceeds will support the R&D center/Innovation Car Lab in Egypt which develops software for Electric Vehicles (EVs) and hybrid vehicles i.e. green R&D.
Secondary quality - Green: The Project has an 87% GET share, supporting the Company's decarbonisation activities and targets through transitioning to e-mobility by enabling the increased production of components for EVs, starting form their R&D in Egypt to their manufacturing in Turkiye. The sustainability linked KPI for the Schuldschein at the group level is 37.95 CO2eq million tons for the financial year ending on 31 December 2025 (compared to 2019 baseline).
Valeo is a tier-1 automotive supplier designing innovative solutions for smart and sustainable mobility, with a particular focus on intuitive driving and reducing CO2 emissions, through its production facilities and research & development centres in 31 countries.
EBRD Finance Summary
Total Project Cost
Financing structure - Capital market. Egypt, Tunisia and Turkiye are all suffering from adverse economic conditions and net FDI has been declining. EBRD's participation is therefore important to support Valeo's commitments and long term investments in these countries.
Standard-setting - Gender Additional. The Company has committed to doubling its share of women on management committees from 16% to 32% by 2030, as well as to increasing its 'Gender Equality Index' an internally-defined composite benchmark of performance on equality between women and men, looking into outcomes around workers' pay, career progression and other features from 82% in 2019 to 90% by 2025, applied across Valeo's plants, including in Egypt, Tunisia and Turkiye.
Environmental and Social Summary
Category B (2019 ESP). The proceeds will be used between Egypt, Tunisia and Turkiye to support including the Group's R&D centre in Egypt for developing software for EVs and hybrid vehicles, new capex in Tunisia to build a greenfield plant, and production of components for hybrid/electric vehicles in Turkiye. Valeo has 184 plants, 16 distribution platforms, 103,300 people working in 31 countries (at end Dec 2021). Environmental and Social Due diligence in this capital markets transaction is limited to publicly available documents which include 'Valeo Activity and Sustainable Development Report 2020-2021', 'Climate Report 2021', 'Valeo Sustainable Financing Framework Report', and 'Second Party Opinion' issued by ISS ESG dated 2021.
As a result of the ESDD, ESD concludes that all of Valeo's environmental and social policies and procedures result in their current operations being compliant with the EBRD's ESP 2019 PRs. Given this framework and the clear commitment to national compliance and good international practice, no additional actions will be required of the Company and an ESAP will not need to be agreed. The Company will be required to maintain compliance with the Bank's PRs and to provide the Bank with annual environmental and social reporting. ESD will review the external auditor's report of the annual performance on the KPIs.
Technical Cooperation and Grant Financing
Company Contact Information
Valeo Media Relations / Valeo Investor Relations
firstname.lastname@example.org / email@example.com
+33 6 67 88 89 33 | +33 6 81 73 83 41 | +33 1 40 55 37 93
100 rue de Courcelles 75017 Paris, France
PSD last updated
02 Feb 2023
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