Greiner AG successfully issued its first promissory note at the Group level in mid-October 2022. This is the first time that financing for the company has been tied to its sustainability performance.
“We have been working hard on the topic of sustainability for years, because we believe that only sustainable companies will have a profitable future. With this promissory note, our sustainability efforts as a company are now also officially reflected in our financing. We will use the capital raised to replace old obligations at more attractive conditions, allowing us to continue along our successful path of profitable, sustainable growth,” says Hannes Moser, CFO of Greiner AG.
Interest rate tied to sustainability performance
After several transactions at division level, the company has now issued the first promissory note in its history with an ESG (environmental, social, and governance) component. This means that the interest rate is tied to Greiner’s concrete sustainability targets. As such, the sustainability performance is the main focus and is examined and assessed each year by an independent business consultancy.
With the promissory note, Greiner AG has set itself three very ambitious targets for the future:
- to expand the share of green electricity worldwide to 100% by 2030
- to increase the share of women in management positions to 40%
- throughout the Group, only to work with suppliers that have an EcoVadis rating of at least 50 points
Annual interest rate reductions to be donated
If these targets are achieved, there is the prospect of annual interest rate reductions, which Greiner AG will donate to non-government organizations. The initial marketing volume was significantly oversubscribed, allowing the volume to be increased to EUR 147 million. The transaction was supported by HSBC and Landesbank Baden-Württemberg.