Hengeler Mueller advises K+S on new ESG-linked Group financing

K+S has signed a new syndicated revolving credit facility in the amount of EUR 400 million. For the first time, the interest rate under this credit facility is linked to the achievement of certain sustainability performance targets. The relevant sustainability key performance indicators relate to the three areas of CO2 emissions, accident figures, and sustainable supply chains.

The sustainability component is designed in an exceptional way: If K+S fails to achieve the agreed targets in these categories, the Company will donate a defined amount to a non-profit organisation. If K+S achieves the target, the margin to be paid by the Company will be reduced. K+S has voluntarily committed itself to donate this amount as well.

The credit line has a term of five years with extension options for up to two additional years. DZ Bank, Landesbank Hessen-Thüringen and LBBW coordinated the self-arranged credit line. Landesbank Hessen-Thüringen acted as sustainability coordinator for the banks in structuring the sustainability aspects. The lending syndicate comprises a total of ten international and national banks.

Hengeler Mueller team for K+S

Financing: Henning Hilke (partner, Frankfurt), Mathias Menzel (associate, London).