Wilo Secures Comprehensive Financing Package Worth 570 Million Euros

In December 2023, WILO SE successfully secured the largest financing package in its over 150-year company history. A promissory note loan (Schuldscheindarlehen) totalling 270 million euros was placed in the international capital market and a syndicated loan totalling 300 million euros was refinanced among the core banks.
Wilo Secures Comprehensive Financing Package Worth 570 Million Euros

WILO SE’s latest financing package (image of the company headquarters in Dortmund) contains a promissory note loan totalling 270 million euros as well as a syndicated loan totalling 300 million euros. (Image source: WILO SE)

WILO SE was thus able to mobilise a total volume of 570 million euros with tenors of up to seven years.

The promissory note includes an ESG (environmental, social, governance) component to reflect Wilo’s leading, holistic sustainability approach in its financing strategy. Wilo Group is thus reaffirming its commitment to climate action and sustainability as well as its pledge to think and act sustainably. Wilo Group is actively committed to climate action and the promotion of social responsibility and has made its sustainability strategy its overarching business strategy.

The transaction gathered very strong demand from national and international investors in challenging market conditions, with more than 40 investors receiving an allocation. The promissory note volume was increased from the initial 75 million euros to 270 million euros due to a significantly oversubscribed order book.

The syndicated loan constitutes a fundamental and important building block in WILO SE’s financing strategy and reinforces the Group’s financial flexibility for future growth.

“The highly successful international placement of our promissory note is confirmation of the great confidence investors have in our company and our long-term, sustainable growth strategy”, explains Oliver Hermes, President & CEO of the Wilo Group. “Wilo is a climate-action company. We’re aware of our social responsibility and reconcile our growth ambitions with environmentally and socially responsible action. Thinking resource-friendly and acting in a sustainable way form our core competences and are an essential part of our corporate culture. It was therefore important to us to incorporate the sustainability aspect into our financing by means of the ESG component.”

“In the current uncertain geopolitical and economic environment and the volatile capital markets, we’ve further optimised our financing structure and strengthened our financing position in the long term”, adds Chief Financial Officer Mathias Weyers. “This has opened us up to a broader and more international investor base, which is an important step in further diversifying the Wilo Group’s financing base and ensuring long-term financial stability. I’m delighted that the placement of our second promissory note after the debut transaction in 2022 and the refinancing of our syndicated loan have been so successful. This is in no small part thanks to the excellent support provided by the arrangers and core banks as well as the well-organised cross-functional Wilo team.”

Source: WILO SE

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