BayWa AG, Munich, has placed a bonded loan linked to environmental, social, and corporate governance criteria (ESG) in the amount of €350 million.
As in the case of the ESG-linked syndicated financing agreement concluded in September, the bonded loan is based on the MSCI sustainability rating. MSCI ESG Research has awarded the BayWa Group an “AA” rating.
The bonded loan has an average coupon of 1.15%, with an average term of 6.3 years and tranches of between five and ten years. Most of the transaction, which was oversubscribed multiple times, was placed with banks from the cooperative and savings sector. Still, there were also subscriptions from private banks from Germany and abroad and institutional investors.
“The proceeds from the bonded loan will mainly be used to refinance bonded loans due in 2021 and 2022. We are delighted to secure such a broadly diversified investor portfolio at extremely attractive terms with this bonded loan, so soon after concluding our syndicated financing agreement,” explains BayWa AG’s Chief Financial Officer Andreas Helber.
According to Uwe Falk, Head of Corporate Treasury at BayWa AG, the conclusion of the ESG-linked bonded loan means that more than 50% of BayWa’s borrowing portfolio is now covered by sustainable and green financing products. Commerzbank, DZ-BANK and LBBW arranged the bonded loan.