Friedrichshafen. The technology group ZF has successfully issued a bonded loan in the amount of €700 million. For the first time, the bonded loan is linked to a sustainability rating by EcoVadis. The total volume of the loan is divided into different tranches with terms of three, five, and seven years.
ZF started the marketing with a term sheet volume of €300 million. Due to significant oversubscription in a challenging market environment, ZF significantly expanded the volume and placed a €700 million bonded loan at the respective lower end of the marketing range. With more than 50 different investors from Germany and abroad, a granular distribution of the order book was also achieved.
Complete range of sustainable financing instruments
For the first time, ZF has linked the interest rate to an ESG rating from EcoVadis, a leading agency for sustainability rating. This is the first time ZF has used the full range of sustainable financing instruments. Previously, ZF placed two green bonds in 2021 and implemented an ESG concept linked to KPIs in the refinanced €3.5 billion syndicated loan in July 2022. The transaction was arranged by Landesbank Baden-Württemberg, Landesbank Hessen-Thüringen, and ING Deutschland.