Allen & Overy advises Commerzbank on sustainability linked syndicated loan for Vossloh

Published Date
Mar 3, 2024
Allen & Overy has advised Commerzbank AG as documentation agent in connection with a syndicated loan of EUR 240 million for global rail technology company Vossloh.

The syndicated loan, which replaces an existing loan agreement from 2017, has been structured as a revolving credit line so that the funds can be drawn flexibly and as needed. The loan amount can also be increased by up to EUR 160 million. The financing agreement has a term of five years until February 2029 and provides for two one-year extension options. These can be exercised at the end of the first and second year of the loan agreement. The long term and high flexibility provide a solid financial basis for the company's targeted profitable growth.

A key feature of the new financing agreement is the linking of the interest margin to the conformity rate of taxonomy aligned sales in accordance with the EU Taxonomy Regulation – a classification system for sustainable economic activities – in the form of a bonus malus scheme. This underlines the importance of sustainability for Vossloh and is an expression of the company's objective to further improve its excellent ESG performance in the future.

The new syndicated loan was provided by a group of eight banks in the form of a club deal. Commerzbank AG acted as documentation agent for the transaction and Bayerische Landesbank acted as ESG coordinator. Landesbank Baden-Württemberg (LBBW) will continue to act as facility agent over the term of the loan.

The Allen & Overy team was led by partner Thomas Neubaum and comprised counsel Dr Mark Hallett and associate Ann-Kathrin Ludwig (all Banking & Finance, Frankfurt).

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This content was originally published by Allen & Overy before the A&O Shearman merger

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