Keolis issues a €100 million inaugural sustainability-linked schuldscheindarlehen

In a challenging environment, Keolis has successfully issued its inaugural Sustainability-linked Schuldschein (SSD) for a size of €100 million.

The Schuldschein with tenors of five and seven years included a set of ambitious KPIs derived from Keolis’ sustainability corporate strategy. The Schuldschein transaction has been arranged by Crédit Agricole CIB, ING and Société Générale and has been distributed with investors from Europe and Asia.

This financing continues to strengthen Keolis’ ESG strategy and puts it at the core of the group’s operations. The Schuldschein includes a margin adjustment mechanism which is based on and linked to achieving annual targets related to environment, diversity and health & safety criteria

This SSD transaction diversifies the funding sources of Keolis and further extends its average maturity. The proceeds of the SSD will be used for General Corporate Purposes.

“This inaugural Sustainability-linked Schuldschein placement further strengthens Keolis’ financing structure by extending the maturity of its debt at competitive conditions. It is an important step towards the diversification of the Group’s funding sources that is fully aligned with Keolis’ broader strategic shift to sustainability-linked financings. The success of this private placement, despite a challenging market environment, highlights the strong support and confidence of our financial partners in Keolis.”
Christelle Villadary, Chief Financial and Legal Officer of Keolis.

Linking all financings to sustainable indicators

With this Sustainability-Linked Schuldschein, Keolis group financings include sustainable features and targets and thereby promote more responsible transport solutions. The KPIs used in the SSD are fully aligned with both Keolis €900m revolving credit facility as well as its €600 million syndicated term loan, announced in January 2022.

The margin indexation mechanism is based on achieving annual targets related to:

The environment, with two target indicators, one indexed to the proportion of employees present in subsidiaries covered by ISO 14001 Environmental Management System (EMS) certification, and the other, from 2023, based on the group’s commitment to reducing greenhouse gas (GHG) emissions

Diversity, with a commitment to increase the proportion of women in Keolis’ overall workforce

Health and safety, through a target to increase the proportion of employees covered by a safety management standard accreditation with a particular focus on the development of internal safety culture training and measures to prevent accidents at work.

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