Eurazeo boosts sub line on ESG criteria

Eurazeo has increased its credit line, which is indexed against ESG performance criteria, by 50% to €1.5bn.

The facility was provided by a consortium of 13 banks and has a duration of five years with the option to extend by an additional year.

According to the firm, this is the first time a facility has been indexed against ESG performance criteria in EMEA. If the criteria are met, the margin calculation will reduce fees, which Eurazeo will instead put towards projects aimed at reducing greenhouse gas emissions. If the criteria are not fulfilled, the additional fees the banks would be entitled to charge would also go towards greenhouse gas emission reducing projects.

Philippe Audouin, CFO of Eurazeo, stated: “The successful renewal of our credit line demonstrates the trust our banking partners have in Eurazeo. We are also very proud to see Eurazeo become the first capital investment firm to put in place an agreement to redirect a portion of the fees to ESG projects. As a catalyst of transformation for business, the capital investment market is ideally placed to make a significant contribution.”

The consortium of banks included as MLAs & bookrunners: BNP Paribas, Cacib, CIC, Natixis and Société Générale; as MLAs: Banque Palatine, Barclays, CADIF, Citibank, Crédit Lyonnais, Goldman Sachs, Intesa San Paolo, JP Morgan, Mediobanca, NatWest Markets and Royal Bank of Canada; and BNP Paribas as CSR coordinator, Natixis as bookrunner and Cacib as the underwriter.