Covestro Secures EUR 225 Million Credit Facility for R&D Activities

Covestro has agreed a EUR 225 million credit facility with the European Investment Bank (EIB). The credit will provide mid-term financing to strengthen Covestro's research and development (R&D) activities in sustainability and circular economy within the European Union (EU). Discussions with the EIB began in 2019 to identify R&D projects suited to the bank's financing requirements. This obligates the fund to be deployed for projects meeting high standards of technical, ecological and social responsibility. Covestro Chief Financial Officer Dr. Thomas Toepfer said: "At the heart of our R&D activities is innovation. This credit provides us with additional financial flexibility to advance our strategic focus in sustainability and circular economy." Ambroise Fayolle, Vice-President of the EIB responsible for operations in Germany and innovation: "It is also important to demonstrate that we continue our regular operations to support companies at a time when Member States and EU institutions have launched billion-euro programmes in response to the crisis caused by COVID-19. For this reason, given that support for climate and environment is among the EIB's priorities, I am very pleased that we have signed this credit with Covestro, a pioneer in circular economy," he said. In autumn 2019, Covestro launched a global strategic programme to establish the circular economy theme across all areas of the company. Core principles include developing innovative techniques and production methods in the use of alternative raw materials as well as advancing recycling from plastic waste. The EIB credit reinforces Covestro's greater commitment to sustainability. This credit complements a recently renewed syndicated credit of EUR 2.5 billion, with an interest rate linked to the company's Environmental, Social and Governance (ESG) rating.