On August 11, 2023, CHG-MERIDIAN successfully launched another ESG-linked bonded loan issue comprising tranches with maturities of four to seven years. The placement proceeds of €100 million will be used to fund the sustainable growth plans of the technology2use company.
Following a four-week marketing phase, the order book for the sustainable bonded loan placement was closed on August 3 with disbursement following on August 11. A total of 23 investors, mainly from the German banking sector, participated in the transaction, including a number of banks from the Savings Banks Finance Group and the Cooperative Financial Network as well as several private banks. In addition to investors who had subscribed to previous placements by CHG-MERIDIAN and rejoined for this transaction, CHG-MERIDIAN’s latest issue also attracted new investors, which helped to further diversify the investor base.
Capital market relects strong confidence in CHG-MERIDIAN
“We set ourselves a target issue volume of €100 million and were able to place this in the market with very healthy take-up. The strong demand from investors indicates that we were very well suited to the market and the current pricing."
“The fact that our funding plan worked out so successfully, even in a volatile and challenging market environment, shows that the capital market has great confidence in our creditworthiness and our sustainability credentials, and that we have become a well-known entity among investors."
Ulrich Bergmann, CFO CHG-MERIDIAN
Fourth sustainable financial instrument issued by CHG-MERIDIAN
The bonded loan is linked to the EcoVadis rating of CHG-MERIDIAN. The Group currently holds a silver rating, which means that it ranks among the top 25 percent of all companies assessed by EcoVadis.
“This new bonded loan constitutes progress on the journey toward our medium-term goal of raising half of our growth-related funding by means of sustainability-oriented financing solutions,” adds Bergmann. The latest bonded loan is the fourth sustainable financial instrument that CHG-MERIDIAN has successfully launched.
CHG-MERIDIAN was supported in the transaction by BayernLB as sole lead arrange
