ALTANA Renews Long-Term Group Financing with First ESG-linked Credit Line

ALTANA focuses on sustainability: The specialty chemicals company has secured a new revolving credit facility (a credit line with a maximum amount for a defined term) from an international banking consortium. This provides ALTANA with €250 million  over the next five to seven years, which the Group can draw on as needed, for example for growth pro-jects or investments.

As an ESG-linked loan, the interest rate depends not only on traditional parameters, but also on the company’s performance regarding environmental, social, and governance pro-cesses (ESG).

The ESG-linked loan takes into account the company’s contributions to greater sustainabil-ity for the first time. At 40 basis points, the initial margin of the newly agreed credit line is at a pre-pandemic level and thus reflects ALTANA’s earning power and balance sheet stability.

For the ESG key figures, ALTANA uses its published climate neutrality and energy effi-ciency targets, as well as those relating to occupational safety. Once a year, an independ-ent auditor reviews the key figures on a specified date. The auditor’s certificate forms the basis for the interest calculation. If the targets are achieved, the interest margin is re-duced.

“The attractive terms of the credit line are clear evidence of ALTANA’s credible and effec-tive sustainability strategy,” says Angela Drautz, head of group treasury at ALTANA.

“Last but not least, they also reflect our economic performance even under challenging pandemic conditions. This reliability is the basis of our high credit rating,” said Stef-an Genten, CFO of ALTANA AG.