German Bank Landesbank Baden-Württemberg (LBBW) and technology group Voith have agreed a credit facility which includes “positive incentive” components, meaning that LBBW's commission diminishes the more sustainably Voith operates.
The LBBW credit facility for Voith includes a revolving credit facility and guarantee facility. The level of guarantee commission is determined by the Voith Group’s sustainability performance. An agreement with bilateral credit facility of this kind is unprecedented in Germany. The sustainability of Voith’s operations will be assessed according to the ISS-oekom research rating. Voith currently holds “Prime” status and is one of the leading companies for sustainable business in its industry.
“The financing concept is a win-win situation. “The “positive incentive” component is an additional monetary incentive for us to achieve our sustainability objectives. This also demonstrates that sustainability is becoming increasingly important for businesses’ financing operations”, explained Michael Hannig, CEO Voith Finance.
“We can continue to intensify our cooperation with Voith and position ourselves as competent partners for sustainable financing,” added LBBW's Board of Managing Directors member for Corporate Customers, Karl Manfred Lochner. The LBBW has already placed Green Schuldscheindarlehen and a green bond for corporate customers and its positive incentive loan is one more element in the range of services it provides. This issue is becoming increasingly relevant in the light of the EU Action Plan for Financing Sustainable Growth. Sustainability is one of LBBW’s strategic priorities. This also involves advising businesses and helping corporate customers to design sustainable business models.