Schaeffler E-Mobility

Location:

Regional

Project number:

51951

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

06 May 2020

Status:

Disbursing

PSD disclosed:

14 May 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Participation with EUR 75 million in an eight-year tranche of Schaeffler AG's debut Schuldschein issuance, a type of German-law capital market instrument, to finance capital expenditure (capex) and R&D to develop production of components for the e-mobility business segment of Schaeffler in Hungary and the Slovak Republic.

Project Objectives

The poject contributes to Schaeffler's global strategy to align its product mix with a low-carbon economy, which necessitates the electrification of road transport/mobility.

Transition Impact

ETI score: 60

The transition impact is derived from the "green" transition quality. The project will contribute to the development and production of components essential for the electrification and decarbonisation of the mobility segment such as e-motors, e-axle drives and systems dedicated to fully electric vehicles with Schaeffler's products supplied to leading original equipment manufacturers (OEMs).

Client Information

SCHAEFFLER AG

Schaeffler AG, headquartered in Herzogenaurach, Germany, is a leading automotive and industrial supplier. The company is listed on the Frankfurt Stock Exchange.

EBRD Finance Summary

EUR 75,000,000.00

The proceeds of the Bank's dedicated tranche will be used exclusively to support Schaeffler's R&D and capital expenditure in Hungary and the Slovak Republic eligible under the Bank's Green Economy Transition approach. The project is in line with Schaeffler's Green Finance Framework (conforming to ICMA Green Bond Principles and LMA Green Loan Principles, as confirmed by the qualified second party opinion) and will fall under its Clean Transportation category. Specifically, the Bank's financing will support R&D and the establishment of new production lines for e-mobility products and components including e-motors and e-axle drives and systems dedicated to fully electric vehicles.

Total Project Cost

EUR 422,000,000.00

Schaeffler's green Schuldschein debut issuance consists of EUR 300m green-labelled tranches focused primarily on refinancing of green projects in Western Europe under the company's ICMA GBP and LMA GLP-aligned Green Finance Framework; an additional EUR 75m tranche funded exclusively by the EBRD for making future green investments in Hungary and the Slovak Republic in line with the eligibility criteria of Schaeffler's Green Finance Framework; and tranches of EUR 47m funded by other investors used for general corporate purposes.

Additionality

The EBRD's participation in the longest tranche of the issuance allows the company to increase the total size of green financing raised under the issuance and therefore accelerate its low-carbon investment programme. Furthermore, the project supports the company's commitment to e-mobility investments in Hungary and the Slovak Republic in the current environment.

In addition, the Bank's financing will be in line with the company's Green Finance Framework (conforming to ICMA Green Bond Principles and LMA Green Loan Principles), which will set an important precedent for other prospective issuers in the region.

Environmental and Social Summary

Category B (2019 ESP) and Low-Medium Risk.  Due diligence on this capital markets transaction focussed on publicly available documentation, in particular the issuance documentation, the Sustainability Reports issued by the Company since 2016 and internet searches.  To supplement these sources, a series of questions have been discussed with the client regarding the application of corporate level policies and procedures at the site level within the Bank's Countries of Operations (CoO's).  The information reviewed has shown that the client has a sophisticated series of integrated Environmental, OHS and Stakeholder Engagement policies that are independently accredited at the corporate level, and at nearly all operational locations globally, including those in the Bank's CoO's.  These policies and procedures are structured to address the key issues that are the subject of the Bank's Performance Requirements. 

The client collates global EHSS performance data through a matrix management system and reports on this performance publicly, in line with the GRI Principles and in line with the EU requirements on reporting of non-financial risk.  This latter requirement is also independently assured.  The client will be required to maintain EHSS performance at the operating sites within the Bank's CoO's in line with the Performance Requirements and report to the Bank annually, confirming this level of performance.

Company Contact Information

Christian Metzler, Corporate Treasury, Head of Capital Markets & Funding Management
Christian.Metzler@schaeffler.com
+49 9132 82-8227
+49 9132 82-7690
www.schaeffler.com
Schaeffler AG Industriestraße 1-3 91074 Herzogenaurach Germany

PSD last updated

14 May 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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