Mercedes-Benz Group.

Mercedes-Benz converts Revolving Credit Facility into a Sustainability-Linked Loan.

October 13, 2022 – Mercedes-Benz Group AG successfully transformed its existing €11 billion Revolving Credit Facility (RCF) into a Sustainability-Linked Loan (SLL). A Revolving Credit Facility is arranged for liquidity backup reasons to secure unforeseen liquidity risks. It enhances overall financial flexibility as required by rating agencies to support its investment grade ratings.

Mercedes-Benz is committed to sustainability as the company plans to go all electric by the end of the decade, wherever market conditions allow. The integration of sustainability principles underlines Mercedes-Benz’s commitment to continuously improve its sustainability strategy through Key Performance Indicators (KPIs) which are selected using the Mercedes-Benz materiality analysis. The KPIs focus directly on the most pressing ESG (Environment, Social, Governance) issues: ‘climate protection’ and the contribution of Mercedes-Benz to reducing its CO₂ footprint. One example for the KPI is the worldwide share of fully electric vehicles in the Mercedes-Benz fleet. If Mercedes-Benz achieves the selected sustainability goals, the commitment fee for the SLL will be reduced.

Our path towards a CO₂ neutral future has been set out clearly with our Ambition 2039. We will therefore align our sustainable business strategy with our financing instruments and transform our existing Revolving Credit Facility into a Sustainability-Linked Loan. This follows on from our previous two green bond issues in 2020 and 2021 and paves the way for Mercedes-Benz to play a leading role in the area of sustainable finance.

Steffen Hoffmann, Head of Treasury and Investor Relations of Mercedes-Benz Group AG.

The transaction was structured by Skandinaviska Enskilda Banken AB (PUBL), Frankfurt Branch (“SEB”) and Landesbank Baden-Württemberg (“LBBW”) as sustainability advisors.

We are proud to advise Mercedes-Benz Group again in communicating their ambitious sustainability strategy through this sustainable finance transaction. This facility affirms their position as one of the corporate leaders in sustainable finance. We are pleased to have been able to add value with our many years of experience and expertise in this field as well as in the automotive industry.

Jürgen Baudisch, CEO and Country Head of SEB DACH.

The bank already acts as structuring advisor for the company’s Green Finance Framework, which is rated “Dark Green” by Cicero.

This transaction and the feedback from our trusted banking consortium pave the way for a potential re-financing of the facility in 2024/25.