A EUR 20m participation in an ESG-linked Schuldschein issuance by MANN+HUMMEL Holding GmbH, a leading global company in filtration technology. Under its two business units Transportation and Life Sciences & Environment, the Ludwigsburg-based Group (Germany) develops intelligent filtration and separation solutions that enable cleaner mobility, cleaner air, cleaner water, and cleaner industry.
The project will support the resilience of the local subsidiary in Ukraine, as well as capital expenditure in Poland, the Czech Republic and Bosnia & Herzegovina for the production of electric vehicle components and for energy efficiency, in line with MANN+HUMMEL's 'Carbon Zero' climate protection strategy.
ETI score: 61
Transition impact will stem from the following qualities:
Resilient: The Project will support the needs of the Ukrainian subsidiary, ensuring the sustainability of its operations in the current unstable environment.
Green: The Project includes capital expenditure for energy efficiency at multiple of MANN+HUMMEL's production plants.
MANN AND HUMMEL HOLDING GMBH
MANN+HUMMEL is a leading global company in filtration technology. Under its two business units Transportation and Life Sciences & Environment, the Ludwigsburg-based Group (Germany) develops intelligent filtration and separation solutions that enable cleaner mobility, cleaner air, cleaner water, and cleaner industry.
EBRD Finance Summary
The project will support local subsidiaries in Ukraine, Poland, the Czech Republic and Bosnia & Herzegovina through financing working capital and capital expenditure.
Financing Structure: EBRD offers a tenor, which is above the market average and is necessary to structure the project.
Innovative financing instrument: EBRD offers an innovative green finance instrument that integrates aspects such as climate and environmental, social and governance (ESG) standards and/or climate and ESG risk considerations into the financing structure.
Environmental and Social Summary
Category B (2019 ESP). The environmental and social risks associated with the production of automotive and industrial filters are well known to the Bank and can be managed through the application of standard industry practice. Due diligence was carried out via review of publicly available documentation issued by the client in relation to sustainability and procedures related to the compliance and the implementation of corporate standards at the site level.
The assessment determined that the client has a sophisticated risk management system in place at all levels of operations and is therefore capable of implementing the Project in line with the Bank's PRs. Current operations are aligned with the PRs. A commitment to maintaining such standards is included in the agreements put in place between the Bank and the client.
The project is considered aligned with the Paris Agreement for climate mitigation as it operates in non-energy intensive industry considering nature manufacturing operations and the scope of use of proceeds. The project is deemed not significantly exposed to physical climate risks and is considered Paris aligned for climate adaptation.
The project is aligned with MANN+HUMMEL's 'Carbon Zero' climate protection strategy through which it aims to make its operations, including those in EBRD countries of operations, CO2-neutral by 2035. The contribution is based on energy efficiency measures to be addressed at plant level and production of substantial components for vehicles with alternative propulsion systems (e.g. battery electric and fuel cell) which is considered as enabling technology for decarbonisation of the automotive sector.
Technical Cooperation and Grant Financing
Company Contact Information
MANN+HUMMEL International GmbH & Co. KG
+49 (7141) 98-0
+49 (7141) 98-2545
Schwieberdinger Straße 126, 71636 Ludwigsburg, Germany
PSD last updated
11 Jul 2023
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Independent Project Accountability Mechanism (IPAM)
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