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
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
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 firstname.lastname@example.org. 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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.