Germany-Based Firm Durr Secures €750M Blockchain Syndicated Loanbr>
Germany-based mechanical and plant engineering firm Dürr has secured a syndicated loan worth €750 million ($840M USD) using an in-house blockchain platform.
The loan, part of Dürr’s sustainability-oriented refinancing, is divided into a cash credit line of €500 million and a guarantee line of €250 million. The loan syndicate consists of 13 banks from Europe, Asia and the United States and includes BNP Paribas, Commerzbank, Deutsche Bank, UniCredit, the Bank of China, DZ Bank, HSBC, ING, JPMorgan, KfW/IPEX, LBBW, Mizuho, and Santander. The syndicate of banks was advised by the Hengeler Mueller law firm.
“The new financing package gives us long-term planning security,” said Carlo Crosetto, CFO of Dürr. “With the sustainability-linked interest rate mechanism for the syndicated loan and the bonded loan, we are pioneering sustainability-oriented corporate financing.”
According to Dürr, the syndicated loan issuance utilized its in-house syndicated loan platform which leverages blockchain technology. The loan was also secured using the mySaveID identity service from Targens, which enables the secure creation and administration of reliable digital identities in the business-to-business segment.
“Digitization is a key element of our strategy, not just in view of our products and services but also in internal and external business processes,” Crosetto said. “It was therefore important for us to use new digital technology in the syndication process, and to gain experience. We have thus reached a further milestone in digitizing our finance area.”