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Allen & Overy advises Knorr-Bremse AG on the conclusion of its first-ever syndicated loan in the amount of EUR 750m

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Allen & Overy has advised Knorr-Bremse AG, the global market leader for braking systems and leading supplier of other safety-critical rail and commercial vehicle systems, on the conclusion of its first-ever syndicated loan (Revolving Credit Facility).

The syndicated loan of EUR 750 million has a term of five years and can be extended by one year up to two times. A sustainability component was also integrated: Knorr-Bremse AG has tied the new financing to an ESG rating by ISS Corporate Solutions, who currently has Knorr-Bremse AG at a solid rating of C+. Within the framework of a bonus-malus system, changes to this rating have a corresponding positive or negative impact on the loan spread.

With the credit facility coordinated by Deutsche Bank AG and UniCredit Bank AG, Knorr-Bremse AG is securing credit over the long term in an attractive market environment and is also including a sustainable instrument in its financing structure with the ESG-linked loan as a green financing element.

The Allen & Overy team consisted of partner Thomas Neubaum and counsel Dr Mark Hallet (both Banking & Finance, Frankfurt).