Simmons & Simmons advises Henkel on the first ‘Green Loan’ financing in the German market
14 Dec 2018
International law firm Simmons & Simmons LLP has advised Henkel on the first syndicated green loan in Germany. The credit facility has a total volume of €1.5bn. Henkel's financing was agreed with a consortium of banks led by UniCredit and Banco Santander.
The interest rate on the loan is based on Henkel's current sustainability rating, which is regularly awarded by the rating agencies Sustainalytics, EcoVadis and ISS-oekom who specialise in this area. This rating is based on compliance with the so-called ESG (environmental, social, governance) criteria which enables Henkel to reduce its financing costs through sustainable corporate management. This type of loan financing is unique in the German market and also innovative throughout the Europe.
The Simmons & Simmons team was led by finance and banking partner and head of the German restructuring practice Dr Werner Meier, supported by Of Counsel Cara Sykes in Bristol. Tax partners Heiko Stoll in Frankfurt and Hatice Ismail in London also advised on the deal.
Dr. Werner Meier said: "With this new form of financing, green loans reached the German market for the first time. The planned interest rate, depending on sustainability ratings, is likely to set an example for other borrowers not only in Germany, but throughout Europe, and will certainly also influence the bond market."
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