Mizuho undertakes leading roles in TRATON’s sustainability-linked loan

July 28, 2020

Mizuho acted as mandated lead arranger, bookrunner, documentation and sustainability agent on behalf of TRATON, who successfully syndicated and signed a €3.75 billion three-year sustainability-linked revolving credit facility (RCF), with two one-year extension options.

A debut facility for this client, we are proud to have acted as one of the co-ordinators for the syndication, as well as jointly undertaking the role as documentation and sustainability agent.

In order to underline TRATON’s commitment to sustainability, and to set further financial incentives for sustainable business performance, a margin adjustment tied to the company’s sustainability rating has been incorporated into the documentation. In addition, there is provision to potentially replace the sustainability rating measurement with internal sustainability targets.

The facility attracted a strong level of interest during syndication and was significantly oversubscribed, highlighting the broad support that TRATON enjoys from its newly defined relationship bank group, allowing the company to increase the facility to €3.75 billion from €3 billion at launch of syndication. The proceeds from the facility will be used for general corporate purposes.

TRATON is a majority-owned entity of Volkswagen AG and a leading commercial vehicle manufacturer worldwide with its brands MAN, Scania, Volkswagen Caminhões e Ônibus, and RIO.

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