Knorr-Bremse AG Launches 1.1 Billion Euro Bond, Paving the Way for Sustainable Investment

Knorr-Bremse AG Launches 1.1 Billion Euro Bond, Paving the Way for Sustainable Investment

(IN BRIEF) Knorr-Bremse AG has successfully issued a dual-tranche bond totaling 1.1 billion Euro, marking its first Green Bond of 500 million Euro aimed at financing eligible green projects. The remaining 600 million Euro bond has a five-year maturity and will support general corporate purposes, including refinancing existing liabilities. CFO Frank Markus Weber emphasized the strong investor interest, highlighting the company’s commitment to sustainability and green mobility. The Green Bond aligns with recognized sustainability principles, receiving a favorable evaluation from Moody’s Investor Services.

(PRESS RELEASE) MUNICH, 25-Sep-2024— /EuropaWire/ — Knorr-Bremse AG has announced the issuance of a dual-tranche bond totaling 1.1 billion Euro, which includes the company’s inaugural Green Bond. This move reinforces Knorr-Bremse’s dedication to sustainability within its capital market financing efforts.

The bond issuance comprises two tranches: a five-year bond worth 600 million Euro and an eight-year Green Bond valued at 500 million Euro. The proceeds from the Green Bond will be directed towards eligible green projects, while the five-year tranche will support general corporate initiatives, including the partial refinancing of a bond maturing in 2025.

Frank Markus Weber, CFO of Knorr-Bremse AG, expressed satisfaction with the transaction, stating, “Our dual-tranche bond issuance, featuring our first Green Bond, is a resounding success. It reflects our commitment to sustainability and reinforces our role as a leader in green mobility. The substantial interest from investors underscores their confidence in our strategic direction.”

The eight-year Green Bond carries an annual coupon rate of 3.250 percent. Funds raised from this tranche will be allocated to projects classified under Knorr-Bremse’s Green Financing Framework, released on August 23, 2024. These projects span four categories: clean transportation, renewable energy, energy efficiency, and green buildings. The framework has received a favorable evaluation from Moody’s Investor Services, which assigned an SQS2 Sustainability Quality Score, affirming its alignment with ICMA Green Bond Principles and LMA Green Loan Principles.

Meanwhile, the five-year bond, with a coupon rate of 3.000 percent, will facilitate general corporate activities. Notably, part of these proceeds will help finance the acquisition of Alstom Signaling North America’s conventional rail signaling business and refinance existing liabilities set to mature in 2025.

This dual-tranche bond issuance not only reflects Knorr-Bremse’s financial strategy but also demonstrates its ongoing commitment to fostering sustainable practices within the industry.

About Knorr-Bremse

Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. 33,000 employees at over 100 locations in approximately 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2023, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.9 billion. For almost 120 years, the company has been at the cutting edge of its industries, driving innovation in mobility and transportation technologies with a leading edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization, and mobility.

Disclaimer

This publication has been independently prepared by Knorr-Bremse AG. It may contain forward-looking statements which address key issues such as strategy, future financial results, events, competitive positions, and product developments. These forward-looking statements – like any business activity in a global environment – are always associated with uncertainty. They are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in Knorr-Bremse’s disclosures. Should one or more of these risks, uncertainties or other factors materialize, or should underlying expectations not occur or should assumptions prove incorrect, the actual results, performances, or achievements of Knorr-Bremse may vary materially from those described in the relevant forward-looking statements. Such forward-looking statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Knorr-Bremse does not intend, nor does it assume any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated.

This publication may include supplemental financial measures – not clearly defined in the applicable financial reporting framework – that are or may be alternative performance measures (non-GAAP measures). Knorr-Bremse’s financial position, financial performance, and cash flows should not be assessed solely on the basis of these alternative supplemental financial measures. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the applicable financial reporting framework. The calculation by other companies that report or describe similarly titled alternative performance measures may vary despite the use of the same or similar terminology.

Media Contacts:

Claudia Züchner
Spokesperson Finance
claudia.zuechner@knorr-bremse.com
+49 89 3547 2582

Andreas Spitzauer
Head of Investor Relations
andreas.spitzauer@knorr-bremse.com
+49 89 3547 182310

SOURCE: Knorr-Bremse AG