The promissory note transaction comprises five tranches with terms of three, five and seven years, the majority of which are offered with variable interest rates. Following strong demand from investors, the original initial term sheet volume was significantly oversubscribed and so PALFINGER decided to increase the volume. The interest rate on all tranches was fixed at the lower end of the market band. Around 40 investors from Austria and abroad have participated in the promissory note loan. The highly successful transaction was arranged by Erste Group Bank AG and Landesbank Baden-Württemberg, using the digital promissory note platform DEBTVISION.
“Our goal was to attract a broad spectrum of investors to PALFINGER also on the debt capital side. I am pleased that we have clearly succeeded once again in issuing this promissory note. Especially in this challenging economic environment, I see this as a strong vote of confidence in the PALFINGER group,” says Felix Strohbichler, CFO of PALFINGER AG.
PALFINGER will use the promissory note loan to refinance maturing loans and finance the investments planned for 2023.
The terms of the promissory note loan are linked to two sustainability KPIs: production related carbon emissions and the accident rate. The achievement of sustainability KPIs is audited annually, with a margin step-up/down if the target values are reached or are not achieved.
Sustainability has been a focus of PALFINGER AG for many years. In the company’s Strategy 2030, the topic of sustainability plays an important part. An internal Sustainability Council ensures the implementation of PALFINGER’s ESG strategy and the sustainable transformation within the company.
