German firm Dürr secures €750M syndicated loan via blockchain technology
Mon, 12 Aug 2019, 06:07 am UTC
Dürr, a Germany-based mechanical and plant engineering firm, has announced that it has secured a syndicated loan worth €750 million with the loan agreement signed using blockchain technology.
The loan was secured as part of Dürr’s sustainability-oriented refinancing. The interest rate is linked to the sustainability rating provided by the EcoVadis agency. This means that the interest rate will rise or fall, depending on certain sustainability criteria such as CO2 emissions and water consumption as well as fair working relationships and conditions at suppliers.
According to a press release dated August 08, the loan syndicate consists of 13 banks from Europe, Asia and the United States and includes BNP Paribas, Commerzbank, Deutsche Bank, UniCredit, the Bank of China, DZ Bank, HSBC, ING, JPMorgan, KfW/IPEX, LBBW, Mizuho, and Santander.
The syndicate of banks was advised by the Hengeler Mueller law firm. Dürr AG received legal support from the Freshfields Bruckhaus Deringer law firm.
Dürr said that the conclusion of the loan agreement served as a pilot project for the digitization of syndication processes. The syndicated loan platform implemented in the project was based on blockchain technology. It was used together with the mySaveID identity service, provided by software company Targens GmbH.
Through, mySaveID, digital identities are created and administered in a secured manner in the business-to-business segment. These digital IDs can then be used for entering company-specific and personal data into contracts, for communication between authorized signatories and for qualified electronic signatures. The digital ID verification will help save time and money and provide enhanced security.
“Digitization is a key element of our strategy, not just in view of our products and services but also in internal and external business processes. It was therefore important for us to use new digital technology in the syndication process, and to gain experience. We have thus reached a further milestone in digitizing our finance area,” Dürr CFO Carlo Crosetto said.
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