TRUMPF extends syndicated credit line with sustainability component

Ditzingen, March 15, 2022 – The high-tech company TRUMPF has extended its syndicated credit line of 500 million euros by one year until February 2027. At the same time, the company, advised by Landesbank Baden-Württemberg, has integrated a sustainability component (ESG component) into the loan agreement. As a result, the terms of the credit line also result from progress on the agreed ESG targets. These consist of the core components of employee satisfaction, occupational safety and climate protection.

"Sustainability aspects are also gaining in importance for small to medium-sized enterprises when it comes to financing," says Lars Grünert, member of the Managing Board and CFO of TRUMPF. "With the ESG component in our syndicated credit line, we’re supporting TRUMPF's sustainability strategy as well as our long-term corporate goals as a family-owned company."

In the realignment of the syndicated loan, TRUMPF is pursuing an indicator-based approach that enables it to link its sustainability strategy directly to the financing, despite this procedure being more complex than a ratings-based approach.

In addition to LBBW, the syndicate leaders of the loan are UniCredit and Deutsche Bank. Further syndicate banks are BNP Paribas, Commerzbank, Helaba and HSBC.