NORMA Group completes financing that includes sustainable components
Maintal, Germany, August 31, 2023
NORMA Group SE has concluded its financing with a platform-based promissory note with sustainability components. Total volume of the financing is €120 million. As in previous transactions, the company is working to consistently implement its sustainability strategy.
The interest margin is increased or decreased by 2.5 or 5 basis points depending on NORMA Group’s sustainability rating. The rating is made available by sustainability agency Sustainalytics. Companies are evaluated according to environmental, social and governance criteria. In an effort to highlight NORMA Group’s already strong sustainability rating and to substantiate it in the long term, four threshold values with corresponding bonus-malus regulations have been established. Consistent improvement in the various sustainability criteria will lead to savings in the financing costs of the new promissory note.
The promissory note with a total volume of €120 million was issued in tranches with maturities of three, five and seven years combined with fixed and variable interest components. The allocation was made at the respective lower end of the interest rate range offered. NORMA Group will use proceeds from the transaction to repay existing financial liabilities and for general corporate financing.
Annette Stieve, Chief Financial Officer of NORMA Group SE, on the successful financing: “We are pleased that we have been able to further optimize our financing structure with this successful refinancing. It provides us with a degree of security and room to maneuver in a financing environment that remains challenging. It is particularly noteworthy that we again managed to attract a broad investor base without financial covenants, including for the first time the European Bank for Reconstruction and Development (EBRD).”
Landesbank Hessen-Thüringen Girozentrale, Landesbank Baden-Württemberg and DZ BANK acted as lead arrangers for the transaction.
NORMA Group was supported by Latham & Watkins as legal advisor.
