Autonom Sustainability-Linked Bond

Location:

Romania

Project number:

53073

Business sector:

Manufacturing and Services

Notice type:

Private

Approval date:

09 Nov 2021

Status:

Signed

PSD disclosed:

01 Dec 2021

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

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. 

Project Objectives

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.

Transition Impact

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.

Client Information

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

EUR 10,000,000.00

Total Project Cost

EUR 48,000,000.00

Additionality

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

Laura Ciubotaru
laura.ciubotaru@autonom.com
+40233229616
https://www.autonom.ro/
Str. Fermelor Nr. 4, Piatra Neamt, 610145

PSD last updated

01 Dec 2021

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.

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

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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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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