The European Bank for Reconstruction and Development (EBRD) has granted a EUR 100 million participation in an ESG-linked Schuldschein issuance by ZF Friedrichshafen AG, a leading global automotive supplier. The funds are designated to enhance ZF’s e-mobility initiatives and research and development (R&D) across Eastern Europe. This financing supports ZF’s local subsidiaries in Poland, the Czech Republic, Slovakia, and Romania, with a focus on advancing electric vehicle (EV) supply chains and decarbonising transportation.
The EBRD financing will facilitate ZF’s acquisition of capital expenditures for producing components for battery-electric and hybrid vehicles, as well as funding R&D efforts. The project aligns with ZF’s broader strategy to foster the development of EV technologies and improve the sustainability of transportation solutions. By supporting this initiative, the EBRD aims to contribute to a reduction in greenhouse gas emissions and promote innovative advancements in the automotive sector.
The transition impact of this project is significant, with a dual focus on green and competitive qualities. On the green front, the initiative will support the production of zero-emission vehicle components and drive the shift towards sustainable transportation modes. On the competitive side, it will bolster ZF’s R&D capabilities, enabling the company to stay at the forefront of technological advancements in the automotive industry.
ZF Friedrichshafen AG, headquartered in Friedrichshafen, Germany, is renowned for its expertise in driveline and chassis technology, as well as safety systems. The company, which serves various sectors including automotive, construction, and wind-power, will leverage the EBRD financing to further its commitment to environmental sustainability and technological innovation.
The financing structure provided by the EBRD is crucial for ZF, offering long-term support that is not readily available from commercial sources. The project is classified as Category B under the EBRD’s 2019 Environmental and Social Policy, indicating that while the environmental and social risks are manageable, ZF’s comprehensive ESG strategies ensure minimal negative impacts. The project is aligned with the Science-Based Targets Initiative, reinforcing ZF’s commitment to reducing greenhouse gas emissions and supporting climate adaptation goals.
