Hoffmann Group – Nailed it!

BayernLB incorporates sustainability components into a syndicated loan for top tool retailer Hoffmann.

The Hoffmann Group, a leading system partner for high-quality tools, is pressing ahead with plans to make its company sustainable. The traditional Munich-based company “nailed it” in its most recent transaction, by introducing an ESG option into the refinancing of its syndicated loan. BayernLB acted as the MLA, bookrunner and sole ESG coordinator of the refinancing, once again demonstrating its sustainability expertise as a financier of progress.

The contract for the new financing includes sustainability features. For example, the Hoffmann Group’s sustainability goals will be measured using the ESG ratings by ESG rating agency EcoVadis and the margin will be linked partly to the company achieving challenging ESG ambitions. If sustainability performance improves beyond this level of ambition, the financing costs for the Hoffmann Group will fall. On the other hand, if the goals are not reached the costs will rise.

The long-term sustainability goals should be measurable, comparable and challenging. The Hoffmann Group is therefore giving itself up to two years to establish the appropriate data base and suitable figures. Within this period, the Hoffmann Group can exercise the ESG option so the sustainability aspects of the financing take effect.

“The issue of sustainability is of great strategic importance to us. BayernLB encouraged us, particularly with its solution-based approach, to follow our hearts and add an ESG option to the long-term syndicated loan for the first time, and impressed us with its in-depth ESG expertise,” said Marc Trube, CFO of the Hoffmann Group.

“Adopting a sense of responsibility isn't something we feel obliged to do – it's something we truly believe in” is not just the Group’s corporate claim. At the Hoffmann Group, sustainability is part of the company’s DNA. It doesn’t just think of itself as a forward-looking system partner for tools, it puts this firmly into practice in its financing.

Wolfgang Wagner, Head of Sustainable Finance at BayernLB, adds: “We do not see sustainability simply as an irreversible trend but as the only right path for our society. I’m delighted our expertise has gained us a reputation as a partner for sustainable finance and that we, together with our customers, can therefore practice our policy of ‘sustainable by conviction’”.

The Hoffmann Group is Europe’s top system partner for high-quality tools and combines retail expertise with manufacturing and service skills. More than 4,000 employees at over 50 locations throughout the world generate revenue of EUR 1.3 billion. Over 135,000 customers trust the reliable supply, quality and productivity of its tools and the excellent advice - from individual needs analysis to efficient product applications.