Nordea Leveraged Finance acted as sole financing provider in the first Nordic sustainability linked loan LBO financing, arranging the financing for Trill Impact’s acquisition of Nordomatic. The transaction confirms a shift in sentiment and a new demand for ESG-related facilities by private equity.
The Nordics have been leading the charge globally when it comes to focusing on combining ESG and investing. Today, Nordea has an award-winning ESG process, global sustainability collaborations, green financial services and in-house initiatives that all testify to the group-wide dedication to sustainability. Investing in an ESG-enhancing way has also been identified by the private equity community as a key enabler and driver of value in coming years.
Nordea Leveraged Finance is proud to further this cause, bringing the sustainability focus into the region’s private equity space by providing the first ever sustainability-linked loan facilities for an LBO in the Nordics, when arranging the financing for Trill Impact’s acquisition of Nordomatic. The acquisition of Nordomatic, a provider of solutions for the full life-cycle of building management systems, shows that financial returns can go hand-in-hand with improving social and environmental impact. Nordomatic addresses the United Nations Sustainable Development Goals 7, 11 and 13, as Nordomatic enables buildings to save up to 40% in energy consumption.
Christer Mannelqvist, a director in Leveraged Finance, who was responsible for the deal, comments, “We are excited to see that we, together with Trill Impact and the Nordomatic team, have found a way to align both commercial and ESG aspects for the benefit of all. We believe that Nordomatic has a strong offering with tangible environmental benefits and the financing platform put in place allows Nordomatic to continue its successful journey, which we think will enhance both value and environmental benefits”.
The Nordea Leveraged Finance unit focuses exclusively on servicing the bank’s private equity clients. As part of Sponsors and International Institutions (S&II), the team of around 50 professionals across the Nordics is responsible for delivering debt services and solutions in a broad set of situations, including leveraged buyouts, acquisition financings, dividend recapitalisations and refinancings. The team strives to be the premier financing partner for Nordic private equity and is staying ahead of the curve by being committed and supporting clients with tailored solutions.
“We are pleased to congratulate all parties involved in this important first! The accelerated growth often seen in private-equity-owned companies, coupled with the strong aggregation of assets under management by private equity funds, leads us to believe that the increased awareness for ESG-related matters throughout this industry has the potential to make a real mark on society,” says Jacob Michaelsen, Head of Sustainable Finance Advisory at Nordea.
The transaction comes on the back of other recent transactions by Nordea’s Leveraged Finance team, including the arrangement of several ESG-linked subscription facilities for private equity clients.
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