Draexlmaier Group II

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The EBRD has subscribed to a debut Schuldschein loan ("Schuldschein") placed by German automotive supplier Draexlmaier Group in the amount of EUR 40 million. The Loan will enable Draexlmaier to expand production capacity in Romania, Moldova, Serbia, FYR Macedonia and Tunisia. Transition impact is expected to arise from strengthening vocational training and knowledge-intensive activities in several countries. The company is a major employer in the relevant countries and has actively pursued skills transfers through cooperation with local educational institutions and training programmes, which is expected to be continued. FRITZ DRAEXLMAIER GMBH & CO KG Draexlmaier Group is a family-owned tier-one supplier to the automotive industry. It develops, manufactures and sells electrical and interior systems to premium manufacturers such as BMW, Mercedes-Benz, Audi and Porsche. The Company is headquartered in Vilsbiburg, and operates globally in over 20 countries with over 60 site locations and employs 55,000 people. EUR 40,000,000.00 Subscription to a Schuldschein loan in the amount of EUR 40 million. EUR 90,000,000.00 Categorised B (2014 ESP). Individual project sites that are to receive bank funds will represent a low or low medium risk of E&S impact and in some cases may deliver a net environmental benefit through efficiency savings and pollution abatement and the company has a good track record with the Bank through previous transactions. As this is capital market transaction with limited direct access to corporate bond issuer the due diligence carried out by ESD was based on the reports and documentation delivered by the Company under the existing annual reporting obligations related to 2013 Dreaxlmaier project and was aimed at assessing the corporate management systems and the capacity of the Sponsor to implement the EBRD's requirements across the portfolio of sites that are subject to the investment programme including capacity expansions, upgrades and brownfield investments in Romania, Moldova, Serbia, FYR Macedonia and Tunisia. Through the existing exposure the company has demonstrated good environmental and social performance and continues to set high standards at its facilities across the company portfolio. In addition, through pilot programme across their German facilities is implementing ISO50001 energy management system. The company has provided annual E&S reports in a timely manner indicating that the previously agreed project ESAP is being implemented. To meet EBRD E&S Policy requirements the group further developed and strengthened their policies in the following key areas: H&S, grievance mechanism and retrenchment. The Company will continue to apply policies and standards developed under the previous transaction throughout the period of maturity of the current project. No new ESAP is required. The Bank will continue to monitor Clients performance through review of AESR's and monitoring visits as necessary. None. Christian Anzinger, Group Treasurer anzinger.christian@draexlmaier.de +49 8741 47- 0 https://www.draexlmaier.com/en/ Fritz Dräxlmaier GmbH & Co. KG Landshuter Str. 100 84137 Vilsbiburg GERMANY