SAP Finalizes New Revolving Credit Facility of €2.5 Billion

SAP SE (NYSE: SAP) announced that it has signed a new €2.5 billion credit facility agreement, refinancing a previous credit facility of €2.0 billion that would have expired in 2020.

The credit facility was refinanced early due to favorable market conditions. With a tenor of five years and two one-year extension options, SAP now ensures significantly improved terms and conditions for upcoming years. The size of the facility was increased to €2.5 billion to support the company’s strong growth. The new credit line may be used for general corporate purposes. A possible future drawdown of the facility is not bound to any financial covenants.

“Our new revolving credit facility constitutes a very strong pillar in our overall financial strategy,” SAP CFO Luka Mucic said. “With this transaction, we significantly enhanced our financial flexibility and lowered our financing costs.”

Citigroup Global Markets Limited, Commerzbank AG, Landesbank Hessen-Thüringen Girozentrale and The Bank of Tokyo-Mitsubishi UFJ Ltd. were mandated as coordinators, bookrunners and lead arrangers in this transaction. Twenty banks were invited by SAP, all of which committed to the new facility. The successful transaction reiterates the excellent reputation of SAP in the capital market and its high creditworthiness based on a strong and stable financial position.

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