Faurecia successfully prices €700 million of sustainability-linked senior notes due 2026 (the “SL NOTES”)

Faurecia has successfully priced €700 million in aggregate principal amount of SL Notes at 7.25%. The SL Notes are to be issued under Faurecia's Sustainability-Linked Financing Framework established in October 2021.

We executed an interest pre-hedging arrangement in September 2021 via a swap option for the SL Notes issuance. The economic cost of the SL Notes issuance for the Group, after considering this pre-hedging arrangement, comes to 5.35% (on a non-IFRS basis).

Faurecia will use the net proceeds of the offering of the SL Notes to refinance in part the bridge facilities put in place for the acquisition of Hella. Following the SL Notes issuance, the aggregate amount outstanding under the bridge to bond and bridge to equity will be reduced to approximately €500 million, and is expected to be further reduced to approximately €200 million after the closing of our previously announced disposal of HBPO.

The pricing of this SL Notes issue is fully in line with Faurecia’s commitment to a sustainable future, and in particular with the Group’s ambition to be CO2 neutral on its scopes 1 and 2 by 2025. The Sustainability Performance Target in the SL Notes is in line with our objective validated by SBTi to be CO2 neutral on our Scopes 1 and 2 by 2025 from a 2019 base year

The Sustainability-Linked Financing Framework has been reviewed by ISS ESG, the Second Party Opinion provider, which assessed the contribution of Faurecia’s SL Notes to the Sustainable Development Goals defined by the United Nations (UN SDGs) as having a “Significant Contribution” to “Affordable and Clean Energy” and “Climate action” goals.

An application has been made to list the SL Notes on the official list of Euronext Dublin (Global Exchange Market) and we expect that the SL Notes will be added to the Euronext ESG Bonds platform. The settlement of the SL Notes is expected to occur on 15 November 2022.