Schaeffler has placed its first schuldschein (German financing tool) loan, raising a total of around EUR350m(US$383m).
Some EUR300m of the proceeds of the schuldschein loan will be used to refinance a portfolio of sustainable projects in accordance with the Schaeffler Group’s Green Finance Framework.
“This successful debut on the schuldschein market in the current very difficult environment is a key building block of our financing strategy,” said Schaeffler CFO, Dietmar Heinrich.
“The schuldschein helps diversify our investor base and broadens our current financing mix. It also lends additional strength to the Schaeffler Group’s solid liquidity position.”
Schaeffler will use its recently issued green schuldschein loan tranches to refinance a portfolio of projects focusing on products for zero-emission mobility such as electric motors and electric axles as well as products for generating climate-friendly energy using wind power.
Additionally, the instruments will be used to invest in making Schaeffler’s worldwide production more sustainable with respect to minimising waste and waste water, as well as reducing energy consumption. Proceeds assigned to the green project portfolio had already been fully allocated when the schuldschein was issued.
The schuldschein transaction consisted of tranches with three, five, and eight-year terms. The tranches were offered with fixed as well as variable interest terms.