Dürr AG issues green Schuldschein loan of €300 million

Press Release Apr 6, 2023

Bietigheim-Bissingen, April 6, 2023 — Dürr AG is continuing its pioneering role in sustainable corporate finance and has today issued a “green” Schuldschein loan for the first time. The proceeds of €300 million have been earmarked solely for sustainable product innovations and climate-friendly projects. In doing so, the mechanical and plant engineering firm is taking into account the EU taxonomy for classifying environmentally sustainable economic activities and following its own sustainable finance framework. The coupon on the “green” Schuldschein loan is tied to Dürr AG’s sustainability rating as calculated by rating agency ISS.

With its “green” Schuldschein loan, Dürr AG is going one step further in terms of sustainability compared with its earlier funding operations. For the first time, the MDax-listed company is committing to the exclusively “green” use of the funds raised. Until now, coupons have generally been linked to sustainability performance.

“Sustainability is becoming increasingly important for our business: We are supporting our customers in their efforts to decarbonize their production processes. With our “green” Schuldschein loan, we are highlighting this strategy and securing additional funds to accelerate the development of climate-friendly products and technologies,” explained CFO Dietmar Heinrich. At the same time, the Dürr Group will also be using the proceeds from the issue to fund operating expenses arising from taxonomy-aligned customer projects and for investments in the sustainability of its own facilities. Examples include the installation of photovoltaic systems for the internal production of power and the construction of energy-efficient buildings.

Oversubscribed multiple times, the “green” Schuldschein loan consists of tranches with long-term tenures of four, five and seven years. The preliminary average coupon is 4.76%, with the proceeds to be collected by Dürr AG on April 20, 2023. Towards investors — commercial banks and savings banks in Germany and abroad — Dürr AG has made a commitment not only to use funds in a green way, but also to further improve its sustainability performance. Specifically, it wants to achieve an ISS “Prime Status” sustainability rating in 2025 (currently: C-); otherwise, investors will be entitled to a higher coupon. Says CFO Dietmar Heinrich: “Demand for our ‘green’ Schuldschein loan was exceptionally strong. More and more investors are looking for quality issuers with a sustainability-aligned business model and ambitious ESG targets.”

The transaction was arranged and structured by Commerzbank, Deutsche Bank, ING and LBBW. Dürr AG’s legal advisor was Freshfields Bruckhaus Deringer. In issuing the Schuldschein loan, the company benefited from its sustainable finance framework, which was published in November 2022. The framework specifies the purposes for which sustainable financing instruments such as the “green” Schuldschein loan may be used and imposes regular reporting obligations on Dürr AG. This transparency meets investors’ information requirements and makes it substantially easier to raise “green” funds on the capital market.

Press photos

Dietmar Heinrich (CFO of Dürr AG) — **Dietmar Heinrich**
CFO of Dürr AG

EcoProBooth — Dürr AG has secured €300 million for sustainable investments and the development of climate-friendly products via a "green" Schuldschein loan. Today, the company is already able to build CO2-free paint shops for its customers.

About the Dürr Group

The Dürr Group is one of the world's leading mechanical and plant engineering firms with extensive expertise in automation, digitalization and energy efficiency. Its products, systems and services enable highly efficient and sustainable manufacturing processes in different industries. The Dürr Group primarily supplies the automotive industry, producers of furniture and timber houses as well as the chemical, pharmaceutical, medical devices and electrical engineering sectors. It generated sales of €4.3 billion in 2022. The company has about 18,500 employees and 123 business locations in 32 countries. The Dürr Group operates in the market with the brands Dürr, Schenck and HOMAG and with five divisions:

Paint and Final Assembly Systems: paint shops as well as final assembly, testing and filling technology for the automotive industry, assembly and test systems for medical devices
Application Technology: robot technologies for the automated application of paint, sealants and adhesives
Clean Technology Systems: air pollution control, coating systems for battery electrodes and noise abatement systems
Measuring and Process Systems: balancing equipment and diagnostic technology
Woodworking Machinery and Systems: machinery and equipment for the woodworking industry

Disclaimer

This publication has been prepared independently by Dürr AG/Dürr group. It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in disclosures of Dürr AG, in particular in the chapter “Risks” in the annual report of Dürr AG. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of the Dürr group may vary materially from those described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Dürr AG neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.

Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). Net assets, financial position and results of operations of the Dürr group should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial metrics used at Dürr AG can be found in our → financial glossary on the web page.