Carlyle’s Wind Farm Parts Maker Will Give ESG Savings to Charity
- Flender pays sustainability-linked interest on buyout loan
- Such pledges common in high-grade loan market, but new to junk
An onshore wind turbin.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
A German gearbox maker owned by Carlyle Group plans to pass savings it makes on a 1 billion-euro ($1.2 billion) loan from promoting clean energy use on to environmental charities, according to people familiar with the matter.
Flender GmbH, whose products include gearing systems for wind turbines, stands to get a discount of as much as 10 basis points on the deal’s interest margin based on how much growth there is in the renewable power capacity it helps to install each year.