Largest-ever ESG-linked Schuldschein issued by non-German company

The French auto­motive technology company Faurecia SE has issued an ESG-linked Schuld­schein with multiple tranches and a total volume equivalent to EUR 700 million. With an initial volume of EUR 300 million, the order book was over­subscribed several times. The proceeds will be used to part-finance the acquisition of the German auto­motive supplier Hella GmbH & Co KGaA. Helaba played a leading role as ESG advisor in the largest-ever ESG-linked Schuld­schein issued by a company outside Germany.

"This trans­action clearly demonstrates that Schuld­schein issuances with ESG components are also very success­ful at the international level," says a delighted Frederick de Graaf, Corporate DCM at Helaba's Paris branch. "We are especially pleased that we had the oppor­tunity with Faurecia to support an issuer that is actively involved in the transformation of the auto­motive sector and pursuing a well-defined sustainability strategy," adds Susanne Hübers, Head of International Corporate Clients France. The metrics and performance targets used for the ESG-structure were aligned with Faurecia's ambitious CO2 reduction strategy, which includes a commitment to slash the company's carbon emissions by 80 % by 2025 compared to 2019. This target, which has been validated by the Science Based Target Initiative, is designed to contribute to limiting global temperature increases to 1.5°C. "There is no doubt that Helaba's support was a decisive factor in making this trans­action a success, not only because it is one of the leading arrangers in the Schuld­schein market but also because it has the necessary sustainable finance expertise," said Selim Hadj-Smail, Vice President Group Financing & Treasury at Faurecia.