Knorr-Bremse Issues First Green Bond

Summary

Knorr-Bremse AG issues a dual-tranche bond with maturities of five and eight years with a total volume of 1,100 million Euro
Knorr-Bremse’s 8-year inaugural Green Bond will allocate 500 million Euro proceeds to eligible green projects
Proceeds from the 5-year 600 million Euro Bond will be used for general corporate purposes including the partial refinancing of the Bond maturity in 2025
The transaction was met with strong interest from investors and was significantly oversubscribed

Yesterday, Knorr-Bremse AG issued a dual-tranche bond amounting to 1,100 million Euro. The transaction included Knorr-Bremse’s inaugural Green Bond. The company is thus continuing to grow its focus on sustainability into its capital market financing.

Knorr-Bremse AG

Knorr-Bremse publishes inaugural Green Finance Framework

Frank Markus Weber, Chief Financial Officer of Knorr-Bremse AG: “Our dual-tranche Bond issuance, including Knorr-Bremse’s first Green Bond, is a complete success. It is an indication that we are on the right track. Using the funds from the Green Bond, we will push ahead with our sustainability plans and strengthen our position as a trailblazer of sustainability and green mobility for our customers. The major interest of investors emphasizes the strong confidence in our strategy.”

The 8-year bond has a volume of 500 million Euro and the annual coupon amounts to 3.250 percent. The proceeds of this tranche are intended to be allocated to green eligible projects, as described in the Green Financing Framework, published on August 23, 2024. This includes projects across four eligible green categories: clean transportation, renewable energy, energy efficiency and green buildings. The framework was evaluated by Moody’s Investor Services (Moody’s) in form of a Second Party Opinion. Moody’s assigned an SQS2 Sustainability Quality Score (very good), which confirms that the framework is in line with ICMA Green Bond Principles and LMA Green Loan Principles and also that it demonstrates a significant contribution to sustainability.

The 5-year bond has a volume of 600 million Euro and the annual coupon amounts to 3.000 percent. The proceeds of this tranche are intended for general corporate purposes, including the partial financing of the acquisition of the conventional rail signaling business of Alstom Signaling North America. In addition, parts of the proceeds will be used for the refinancing of existing liabilities maturing in 2025.

About Knorr-Bremse

Knorr-Bremse (ISIN: DE000KBX1006, ticker symbol: KBX) is the global market and technology leader for braking systems and a leading supplier of other rail and commercial vehicle systems. Knorr-Bremse’s products make a decisive contribution to greater safety and energy efficiency on rail tracks and roads around the world. 33,000 employees at over 100 locations in approximately 30 countries develop and produce innovative solutions and services that meet the highest technological standards. In 2023, Knorr-Bremse’s two divisions together generated revenues of approximately € 7.9 billion. For almost 120 years, the company has been at the cutting edge of its industries, driving innovation in mobility and transportation technologies with a leading edge in connected system solutions. Knorr-Bremse is one of Germany’s most successful industrial companies and profits from the key global megatrends: urbanization, sustainability, digitalization, and mobility.

Disclaimer

This publication has been independently prepared by Knorr-Bremse AG. It may contain forward-looking statements which address key issues such as strategy, future financial results, events, competitive positions, and product developments. These forward-looking statements – like any business activity in a global environment – are always associated with uncertainty. They are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in Knorr-Bremse’s disclosures. Should one or more of these risks, uncertainties or other factors materialize, or should underlying expectations not occur or should assumptions prove incorrect, the actual results, performances, or achievements of Knorr-Bremse may vary materially from those described in the relevant forward-looking statements. Such forward-looking statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Knorr-Bremse does not intend, nor does it assume any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated.

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