The bonding line arranged by Commerzbank will be used to secure customer advance payments as well as contract fulfilment and warranty obligations. Eighty percent of the credit amount is counter-guaranteed by parallel default guarantees from the German Federal Government and the Free State of Saxony, while the remaining 20% of the credit risk is borne by the banks themselves. The bonding line has a tenor of five years.
The structure of the instrument eliminates the need for Sunfire to provide cash collateral as security. As a result, the company can deliver customer orders financially more efficiently. It also allows Sunfire to utilize advance payments received for manufacturing of electrolyzers more effectively – without tying up its own funds as collateral.
The public counter-guarantees also represent a special feature: this instrument is being specifically used to support the transition to a decarbonized world and the development of new markets. It will enable Sunfire to realize several customer projects in parallel, thereby driving forward the development of the hydrogen market.
“With the bonding line, we can not only realize existing projects, but also drive industrial scaling with our own financial resources,” said Frank Posnanski, CFO of Sunfire. “The support demonstrates confidence in young companies and future-oriented technologies. It is a signal that Germany is determined to make its industry sustainable and fit for the future.”
Lars Ehle, responsible for Structured Finance at Commerzbank in the Central/Eastern Region, said: “We are proud that, together with Sunfire and the consortium partners, we have successfully arranged a medium-term financing that enables Sunfire to realize its project pipeline in a capital-efficient manner and continue its dynamic growth. This is transformation financing at its best!”
Stefan Wenzel, Parliamentary State Secretary to the Federal Minister of Economic Affairs and Climate Action, said: “With the parallel federal-state guarantee, the Federal Government is supporting the production of electrolyzers in Germany. Access to sustainable financing is a key element for resilient value chains in transformative technologies. In doing so, we are strengthening our strategic, energy policy, and technological sovereignty, in alignment with the European goals of the Net Zero Industry Act.”
