Saur has successfully issued its inaugural sustainability-linked bond of €950m

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On September 09th, 2021 Saur successfully completed its inaugural Sustainability-Linked Bonds with an issuance of EUR 950 million. With this transaction, the Group refinanced its debt and extended its maturity.   

By focusing on sustainability, linking the cost of financing to the achievement of concrete objectives in terms of environmental performance, the Group confirms its ambition to place social responsibility at the heart of its growth model, around its mission, “Stand for Water”.

This issuance which was significantly oversubscribed comprises two tranches of senior unsecured sustainability-linked bonds, including a tranche of EUR 450 million with a maturity of 4 years and an annual coupon of 0.125 % issued at a price of 99.773 %, and a tranche of EUR 500 million with a maturity of 7 years and an annual coupon of 0.625 % issued at a price of 99.768 %. This issue and the issuer are rated Investment Grade BBB- by Standard & Poor’s and Fitch Ratings. A new senior revolving credit facility will also be put in place for an amount of EUR 250 million and a final maturity of 4.5 years, with a sustainability-linked margin adjustment mechanism.

 

The bond financial characteristics are tied to the performance of the company's Carbon Intensity and Water Withdrawals KPIs. With one sustainability performance target (SPT) per KPI for each tenor (2023 for the 4yr and 2025 for the 7yr), the transaction contemplates a coupon step up of 25bps annum.

 

Natixis has been accompanying Saur/EQT teams through the process as Sustainability Structuring Advisor for both transactions and as Active Global Coordinator and Joint Bookrunner of the bond.

 

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