Etex successfully issues a EUR 800 million ESG-linked Schuldschein loan

Zaventem, 8 June 2022 - Etex has successfully finalised its third Schuldschein issue, raising EUR 800 million. It is Etex’s first environmental, social and governance-linked Schuldschein issue and it represents the largest-ever ESG-linked Schuldschein issue by a non-German speaking company. A Schuldschein is a privately-placed, medium to long-term unsecured debt governed by German law¹. The placement comprises three euro-denominated tranches with maturities of 3, 5 and 7 years, at fixed and floating rates.

Despite the difficult geopolitical and challenging interest rate environment, the issue was oversubscribed several times, enabling Etex to upsize its final amount to EUR 800 million from the EUR 300 million initially announced.

The proceeds of the Schuldschein will be used to finance a large portion of the acquisition of URSA, a leading European player in insulation solutions, which was completed last week. The balance of the acquisition will be financed through available cash and existing unused credit facilities. The insulation product portfolio of URSA complements perfectly the light-weight construction solutions of Etex and will support strongly to reduce the energy footprint of buildings over their total lifespan.

Investors consist of approximately 30 high-quality Asian and European private and public banks as well as insurance companies.

The ESG-link underlines Etex’ commitment to sustainability matters and sets financial incentives for sustainable business performance. The ESG rating of Etex improved consistently over the last few years and since the first rating in 2019 Etex is ranked in the top 10% of the building products industry.

All tranches have been priced at attractive levels at the lower end of the respective price ranges. The average duration of this new loan offering over the three tenors is 5.8 years.

Bernard Delvaux, Chief Executive Officer at Etex, stated: “We are very pleased with this new Schuldschein issuance which we successfully completed in a challenging context. It testifies of a significant appreciation of Etex’ credit quality, of its performance of the last years and it demonstrates the investors’ confidence in the company’s strategy. Moreover, this operation broadens our investors’ base at attractive market conditions, increases the number of maturities and considerably extends the duration of our debt profile.”

¹ https://www.iflr.com/article/b1lmx4q7wfb2f8/primer-schuldschein