EIB provides Evonik with €500 million loan for R&D

The European Investment Bank (EIB) has provided a €500 million framework loan to Evonik, Germany's second-largest chemical company and one of the world's largest. The loan will be used to finance the company's European research and development activities, which has firmly integrated sustainability into all elements of its 2022 corporate strategy.

The loan will support next-generation solutions, the company's particularly sustainable product portfolio. The product portfolio currently accounts for 43% of Evonik's total revenue, and the goal is to exceed 50% by 2030. Next-generation solutions include products such as biosurfactants from Slovakia, lipid nanoparticles from Germany and gas filtration membranes from Austria. Europe is a key location for much of the company's R&D.

R&D also helps reduce a company's carbon footprint by reducing direct and indirect greenhouse gas emissions during production. The company's climate goals are in line with the Paris Agreement on Climate Change. They are certified by Corporate Climate Action's Science-Based Targets Initiative. Furthermore, Evonik is working to revalidate its climate targets in the near future in order to align itself with a path to limiting warming to 1.5°C by 2050.

The term of the EIB loan is six years from the date of utilization. The EU bank will therefore complement Evonik's existing financing portfolio with a long-term financing facility that offers attractive conditions relative to current markets.

Nicola Beer, Vice President for German Financing at the EIB said: " The EIB's financing focuses on helping our clients develop their own solutions to achieve climate action, circularity and biodiversity goals. We are pleased to support Evonik on this path and accelerate the implementation of the company's ambitious transformation plan. "