By Mary-Katherine Stinson
Lexington, Ky., Oct. 19 – Knorr-Bremse AG sold €700 million 3.25% sustainability-linked bonds due Sept. 21, 2027, according to a post-stabilization notice and a press release.
The bonds priced at 99.723, or at a spread of 182.6 basis points over Bunds.
The bonds are the inaugural sustainability-linked bonds for the issuer.
The coupon is tied to the company’s scope 3 emissions. The interest rate will be increased by 20 bps if the company does not achieve its target.
Deutsche Bank, HSBC and UniCredit are the bookrunners.
Proceeds will be used for general corporate purposes.
Knorr-Bremse is a Munich-based manufacturer of braking systems for rail and commercial vehicles.
| Issuer: | Knorr-Bremse AG
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| Issue: | Sustainability-linked bonds
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| Amount: | €700 million
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| Maturity: | Sept. 21, 2027
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| Bookrunners: | Deutsche Bank, HSBC and UniCredit
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| Second opinion: | ISS Corporate Solutions
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| Coupon: | 3.25%
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| Price: | 99.723
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| Pricing date: | Sept. 15
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| Spread: | Bunds plus 182.6 bps
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| ISIN: | XS2534891978
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