TRIMET Aluminium SE (“TRIMET”) has concluded a new revolving credit facility to secure its capital requirements for upcoming investments. The interest terms of the EUR 250 million loan, which can be drawn down over the next three to five years, are linked to the achievement of sustainability targets. The ESG-linked loan, whose interest margin is tied to the sustainability rating issued by EcoVadis, was provided by an international consortium of ten banks, with BayernLB acting as documentation agent.
ESG-linked financing is currently gaining in importance. The interest margins on this form of sustainable financing are linked to either KPIs or sustainability ratings.
TRIMET is a medium-sized family business that develops, manufactures, recycles and sells light-metal parts made of aluminium for such products as cars, aircraft and wind turbines. With an annual capacity of 765,000 tonnes, TRIMET, headquartered in Essen with eight production sites in Germany and France, is Germany’s largest aluminium manufacturer and currently employs around 2,300 people. For the 2020/2021 financial year the group posted over EUR 1.5 billion in sales.
TRIMET will be using this first ESG-linked financing to further align its aluminium smelters, foundries and remelting plants with a more climate-friendly production. Germany’s largest aluminium manufacturer is pursuing the goal of climate-neutral aluminium production at all its domestic sites by 2045.
“As a domestic producer of aluminium, we focus on sustainability. In BayernLB we have a strong, dependable partner that understands our strategy and supports us with suitable financing solutions. We’re very glad to have BayernLB at our side, with its commitment to the early refinancing and to the syndicated loan increase, and with its expertise, which it has used to help arrange our first ESG-linked financing in the capacity of a documentation agent,” said Philipp Schlüter, CEO of TRIMET Aluminium SE.
“We are pleased that we were able to serve TRIMET for the first time as a documentation agent and demonstrate in the process our credit and structuring expertise – especially in a debut ESG-linked financing – as a lead bank in an international banking group,” emphasised Wolfgang Wagner, Head of Corporate Finance & Sustainable Finance.