Fresenius Medical Care signed a new €2 billion sustainability-linked revolving credit facility (RCF)
On 1st July 2021, Fresenius Medical Care, the world’s leading provider of products and services for people with chronic kidney failure, has signed a new EUR 2 billion 5-year sustainability-linked revolving credit facility (RCF) with two one-year extension options, exercisable at lender’s discretion. The facility will be used for general corporate purposes including the refinancing of existing revolving credit facilities, consisting of a USD 900 million RCF and a EUR 600 million RCF, initially signed in 2012 and amended from time to time.
Crédit Agricole CIB acted as Coordinator, Bookrunner and Mandated Lead Arranger as well as Sustainability Agent. The facility has been arranged together with three other Coordinators and syndicated to a group of 30 additional relationship banks.
On top of being the first sustainable financing instrument of Fresenius Medical Care, this new sustainability-linked RCF was an opportunity to move the documentation from New York law to German law and thus follow LMA standard. The very high hit rate achieved through the syndication phase reflects the clear structure and strategy supporting this refinancing.
In order to highlight Fresenius Medical Care's continuous commitment to sustainability, the documentation includes margin adjustments tied to the company’s ESG rating, while offering the possibility for a replacement by internal sustainability targets once defined by the company and negotiated with the sustainability agent.
The Coordinator role has been granted on the basis of a value-adding and distinctive pitching effort by Crédit Agricole CIB's Sustainable Banking and Debt Optimisation & Distribution teams over several months. The spot-on market read of the deal team helped the Bank to successfully distinguish itself even amongst the four coordinators throughout the syndication process.
“We are proud to have served Fresenius Medical Care's team on this landmark transaction, setting new standards for the healthcare markets in Germany and the US with the sustainability-linked financing feature. It is a testimony of Crédit Agricole CIB’s expertise in Sustainable Finance and our ability to successfully coordinate financings in both key markets.”
Lars Breuer, Managing Director, Senior Banker
“A close collaboration of a very international Debt Optimisation & Distribution deal team with members in Frankfurt, London and New York as well as the cutting edge input from our Sustainable Banking team has been the basis to win this highly visible and strongly contested mandate. It is a testimony of our market leading position and ability to successfully coordinate financings in both key markets, the USA and Europe and alongside several other coordinator mandates currently in execution proofs our ever growing intimacy with our German based blue chip clients.”
Christian Andrae, Managing Director, Head of Debt Optimisation & Distribution Germany and Austria
Romina Reversi is appointed Head of Sustainable Banking for the Americas
Georg Orssich is appointed Senior Regional Officer for Europe (excluding France) and Senior Country Officer for Iberia
Winner of 7 awards from The Banker Magazine’s Deals of the Year Awards 2021