Allen & Overy advises SAP SE on EUR 3 billion sustainability-linked revolving credit facility

The new credit facility with a tenor of five years plus two one-year extension options was syndicated among a group of 20 core relationship banks. A possible future drawdown is not bound to any financial covenants. The new facility replaces the existing EUR 2.5 billion facility.

In line with SAP’s strategic commitment to sustainability, a sustainability component has been embedded in the new credit facility for the first time. The included ESG-component links the margin of the new facility to the company’s net zero carbon and women in management ambitions.

The new revolving credit facility constitutes a very strong pillar in SAP's financial strategy. With the higher volume and the new ESG linkage it further enhances SAP’s financial flexibility and additionally underpins its commitment to sustainability.

Citibank, Commerzbank AG, Landesbank Hessen-Thüringen Girozentrale and ING Bank were mandated as coordinators, bookrunners and lead arrangers in the transaction.

Allen & Overy advises SAP regularly, including on financing issues such as the refinancing of the 2017 credit facility that has now been replaced.

The Allen & Overy team comprised partners Thomas Neubaum (Banking & Finance) and Dr Heike Weber (Tax), counsel Dr Mark Hallett and associate Anastasiya-Evangelina Wiegand (both Banking & Finance, all Frankfurt).

In-house advice at SAP SE was provided by Anette Kirnberger, Lead Senior Legal Counsel.