Egis is a world flagship in the field of architecture, engineering construction, consulting, and mobility services. The first sustainability-linked Euro Private Placement (Euro PP) was signed for Egis, and they have managed to raise €124 million. With a period of maturity over six years, the financing thus shows the further stride made by Egis in the strategic objective of incorporating sustainability in its business model. The money raised will fund the company’s medium-term needs, its growth plans, and M&As, by the same token, to solidify its dedication to minimizing environmental impact through explicit KPIs.
The €124 million raised through this Euro PP testifies to the confidence of the investor community in Egis’ financial well-being and sustainability approach. This is Egis’s first sustainability-linked Euro PP, and it is in line with the firm’s journey toward more sustainable businesses. The funds will be provided for general corporate purposes until 2028, giving Egis a firm liquidity position to pursue its development plan, including potential M&A activities.
In this regard, the sustainability linkage in the Euro PP is tied to three particular KPIs, central to the Egis group’s global sustainability framework and designed to measure and drive the company’s progress in reducing its environmental footprint and enhancing sustainable operations. The KPIs have been validated by Institutional Shareholder Services (ISS) to ensure they are in line with the sustainability-linked principles of Loan Market Association (LMA) in framing a benchmark for sustainability-linked financial instruments.
The three KPI areas concerned are central to critical dimensions of Egis’ operations:
Reduction of Greenhouse Gas Emissions: Egis commits to substantial reductions in its greenhouse gas (GHG) emissions as part of the overall environment sustainability policy. This KPI will trace the company’s progress to cut down on emissions across operations in conformity with efforts worldwide to combat climate change.
Eco-Designed Projects Rising: A major tenet of the sustainability strategy at Egis is to uphold eco-designed projects. This involves integrating the principles of sustainable design in the company’s projects to reduce environmental footprints and to enhance long-term sustainability practices.
Employee Training in Project Eco-Design: The focus of Egis that will ensure sustainability is cascaded at every level of business is the extensive training of its employees in project eco-design. This KPI will measure the degree to which the employees are in a position to carry out sustainable practices within their work.
Introducing these KPIs into the Euro PP is part of the general move by Egis to bring its financial undertakings in line with its sustainability objectives. This represents Egis’ first step in tying financing to measurable sustainability results, after the successful issuance in June of a Sustainability-Linked Loan featuring similar key KPIs. Therefore, the company is leading a landmark approach in the industry, in which financial growth is compatible with environmental responsibility, thanks to a clear link between financing and measurable sustainability key performance indicators.
This sustainability-linked Euro PP is also meant to provide Egis with greater diversification of its funding sources, drawing top-tier investors who are more and more focused on sustainable finance. The backing of such investors is not only a strong endorsement of the Egis strategy; it will also permit the company to have financial flexibility in order to deliver at pace on its ambitious growth and sustainability objectives.
Sustainability-related commitments by Egis thus go beyond financial instruments to apply to its common operational practices. Hegis’s commitment relates to reduction in GHG emissions and eco-design which is compatible with global sustainability trends as well as requirements of law and regulation. Egis keeps on track ahead in best practices of the industry.
Earning from these funds will allow Egis to realize their mid-term aspirations without diluting their commitment to sustainability. All these KPIs will act like a benchmark for the company’s progress in order to ensure that the company is accountable towards its sustainability goals. By 2028, Egis shall have made important steps toward reducing its environmental footprint and maximizing, practiced sustainably—that will set into motion the industry with a more sustainable future.
The €124 million sustainability-linked Euro PP for Egis SA is the closest cornerstone in the company’s ongoing effort to integrate sustainability into its financials and operations’ strategy. Linking such finances to key performance indicators that are measurable underpins Egis’s commitment to environmental responsibility and sets an example in that regard for its sector. Insofar as the company seeks its objectives in growth and sustainability, in light of the attainable objectives, this Euro PP provides for the medium-term requirements that support Egis, and confirm the company’s long-term viability.
Source: Egis