The Landesbank Baden-Wurttemberg (LBBW) and technology group Voith have reached agreement on a credit facility that includes “positive incentive” components. This means that LBBW’s commission diminishes the more sustainably Voith operates.
According to a press release, 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. The sustainability of Voith’s operations will be assessed according to the ISS-oekom research rating, Voith says. Voith holds “Prime” status.
Voith says 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,” explains Michael Hannig, chief executive officer of Voith Finance.
“We can continue to intensify our cooperation with Voith and position ourselves as competent partners for sustainable financing,” says LBBW’s Board of Managing Directors member for Corporate Customers, Karl Manfred Lochner.
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.
LBBW is both a medium-sized universal bank and the central bank of the savings banks in Baden-Wurttemberg, Saxony and Rhineland-Palatinate. Its core activities are the business with corporate customers, in particular small and medium-sized enterprises and the private customer business, as well as savings banks.