Germany’s Mechanical and Plant Engineering Firm Dürr Gets €750 Million Loan on the Blockchain
Dürr, a German mechanical and plant engineering company, has recently been able to secure a $750 million EUR loan. According to the company, the loan is “eco-friendly” and has a close link to the company’s performance in eco-friendliness.
This loan was made using the blockchain platform and a syndicated loan digital platform. The idea was created because of the current climate crisis that the world is living in and with the necessity of focusing more on sustainability.
According to the deal, the company got $200 million EUR right now and it needs to keep up with its sustainability rating in order to receive the rest of the loan. The rating takes some factors such as water consumption and how the company harms nature into account. The official score will be given by a local agency called Ecovadis.
By using the Targens platform, Dürr was able to connect with a group of 13 banks that loaned the money. They were from several countries in Europe, Asia and from the United States.
According to Dürr’s Chief Financial Officer (CFO) Carlo Crossetto, the digitized process makes the process considerably easier and faster than it used to be. The banks can lend the money remotely and the company only needs to follow the rules in order to get the rest of the money.
He affirmed that these blockchain platforms are set to be very important for the future of finance. Also, they can represent some progress in the sustainability area as well as they have mechanisms that can promote eco-friendliness with financial incentives.