The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a healthy indoor climate, has taken out a syndicated credit facility of EUR 100 million with a term of three years, creating greater financial flexibility. By linking the lending rates to criteria relating to environmental, social and corporate governance considerations, it is also strengthening its focus on sustainability.
Creating more financial leeway
The Zehnder Group has taken out a credit facility of EUR 100 million under the management of UBS and with the participation of Credit Suisse and Zürcher Kantonalbank. It will also be possible to increase the facility by EUR 50 million if larger acquisitions need to be made. The agreed term is three years with options to extend. This new syndicated credit facility replaces the previous credit limits amounting to EUR 76 million, which were secured shortly after the outbreak of the COVID-19 pandemic.
Interest on the syndicated credit is linked to the ESG (Environment, Social, Governance) Risk Rating provided by Sustainalytics, an ESG research, ratings, and data firm. If the Zehnder Group’s sustainability rating improves, the interest margin on the credit decreases. However, if its ESG performance decreases, the financing costs will increase.
“The Zehnder Group has a solid balance sheet with net liquidity and a high equity ratio. By increasing and extending our credit limit, we are expanding our financial scope for potential acquisitions. We deliberately chose to include an ESG component in our financing to underline our commitment as well as our continued ambition and dedication to focusing on sustainability,” explained CFO René Grieder.
Dedicated to sustainability
As a provider of indoor climate solutions that are energy-efficient, health-promoting and comfortable, the Zehnder Group operates in a market where sustainable development is essential. The issue of sustainability is an integral part of the Zehnder Group’s strategy. In the reporting year, it forged ahead with its commitment to sustainability by focusing on six key areas: customers, products, the manufacturing chain, employees, society and profitability. Through its business activities, the Zehnder Group contributes to the UN 2030 Agenda for Sustainable Development, in particular to the following six of the 17 goals.
The Zehnder Group improves quality of life with comprehensive indoor climate solutions. The globally active company develops and manufactures its products in 17 plants, including 6 in China and North America. Its sales activities, spanning more than 70 countries, take place through local sales companies and representative offices.
Zehnder Group products and systems for heating and cooling, comfortable indoor ventilation and air cleaning are characterised by outstanding design and high energy efficiency. The Group is among the market and technology leaders in its business areas with brands such as Zehnder, Runtal, Acova, Bisque, Greenwood, Paul, Core, Enervent and Recair.
The Zehnder Group has had its headquarters in Gränichen (Switzerland) since 1895. It employs around 3300 people worldwide and achieved sales of EUR 644 million in 2019. The company is listed on the SIX Swiss Exchange (symbol ZEHN/number 27 653 461). The unlisted registered shares B are held by the Zehnder family and persons closely associated with them.