EnBW successfully renews sustainability-linked syndicated credit line

Karlsruhe. EnBW Energie Baden-Württemberg AG signed a new syndicated credit line for €2 billion including an option to increase the facility by €500 million with a syndicate of 21 banks. With this new credit line, which is once again linked to ambitious sustainability indicators, EnBW has successfully renewed the €1.5 billion credit facility from 2020 ahead of schedule. It has an initial term of five years with two one-year extension options. As before, the new credit line is earmarked for general corporate purposes. The increased volume further strengthens EnBW’s liquidity profile. In addition, EnBW continues to have extensive bilateral bank lines totalling around €6 billion for short-term financing within the Group. EnBW also benefits from its integrated business model, which stands for risk diversification and resilience. EnBW is therefore in a robust and solid position to successfully implement the energy transition.

EnBW has ambitious emission reduction targets which are geared to achieving carbon neutrality by 2035. The sustainability indicators tied to the borrowing costs of the syndicated credit line were selected accordingly. These include the reduction of CO2 emissions in Scope 1 and 2 and for the first time a reduction pathway of CO2 emissions in Scope 3. The share of EU Taxonomy-aligned investments was also newly included. These indicators are of major importance to EnBW’s core business and consequently for corporate management. EnBW’s borrowing costs for the credit line are reduced or increased according to target achievement on the sustainability indicators.

The coordinators were BayernLB, BBVA, Commerzbank and SEB.