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Covestro to get € 225 million loan from EIB
Covestro is to get a loan amounting to € 225 million from the European Investment Bank (EIB). The loan will provide medium term funding to strengthen Covestro’s research and development work in the areas of sustainability and circular economy within the European Union (EU). The EIB loan further establishes Covestro’s commitment to sustainability.
Discussions with EIB started in 2019 to identify R and D projects which would be compatible with the financing requirements of the EIB. These require that funding is applied to projects which meet high standards of technical, ecological and social responsibility.
“The core of our R and D activity is innovation,” said Dr. Thomas Toepfer, CFO of Covestro. “This loan provides us with additional financial flexibility to push forward our strategic focus in the areas of sustainability and the circular economy.”
EIB vice-president Ambroise Fayolle, responsible for the bank's operations in Germany and innovation, said: “In times when member states and EU institutions are putting in place multi-billion euro programmes in response to the crisis caused by COVID-19, it is also important to demonstrate that we are continuing our regular business in support of companies. I am therefore very pleased that we have just signed this loan with circular economy pioneer Covestro, as support for the climate and environment is among the EIB's top priorities.”
In autumn 2019, Covestro published a global strategic programme to establish the theme of circular economy throughout all areas of the company. The main principles are to improve recycling from plastic waste, alongside the development of innovative technical and production methods in the use of alternative raw materials.
The EIB loan provides a further commitment of Covestro to sustainability. It complements the recently renewed syndicated revolving credit facility of € 2.5 billion, whose interest rate is linked to the company’s Environment, Social Governance (ESG) rating.