DZ BANK issues second Green Bond
Issue three and a half times oversubscribed
- The Green Bond has been launched with a volume of EUR 250 million; intense interest from investors, almost three and a half times oversubscribed
- DZ BANK issues its first green senior non-preferred bond
- Focus on financing projects for wind power generation in the US and Canada
- Board Member for Capital Markets Wolfgang Köhler: "We want to be a regular issuer of green bonds on the market in the future"
DZ BANK has now launched its second Green Bond. The bond was placed with a seven-year maturity as a senior non-preferred bond and generated a great deal of interest among investors: With an order volume of EUR 850 million, the issue, which was limited to a volume of EUR 250 million, was oversubscribed by a factor of almost three and a half times. It is DZ BANK's first green issue in this format, and so makes a contribution to the further development of the market for sustainable bonds.
The bank implemented the transaction itself on the basis of its extensive sustainability expertise and capital market experience, and aligned the bond with the Green Bond Principles of the International Capital Markets Association (ICMA). Standard & Poor's Global Ratings (S&P), the rating agency commissioned to conduct an independent sustainability assessment, rates the bond as "E1" - the highest rating for such a green bond.
"The successful placement of this innovative green bond underscores our claim as a bank to help shape the move towards a sustainable economy," says Wolfgang Köhler, DZ BANK's Board Member for Capital Markets. "We take a holistic view of sustainability, from lending and risk management to refinancing. This satisfies customers and capital markets alike."
Investors include not only players from the cooperative financial network, but also institutional investors outside the group with a clear focus on sustainability, from both Germany and abroad.
Financing of onshore projects in Germany and North America
The bond is directed to financing projects in the field of renewable energies, especially onshore wind turbines. In contrast to our first Green Bond in 2018, which focused on the domestic market, this time the bank will primarily direct the funds to projects in the US and Canada. Projects financed by DZ BANK in North America can play an important role in reducing the region's huge greenhouse gas emissions. The first Green Bond, successfully launched in 2018, has already been used for onshore wind power projects. Onshore wind power portfolios are recognised by investors as a "deep green" asset class, especially if they are realised in Western countries with their high standards in environmental and social issues.
Regular sustainable issues are planned for the future
"Sustainability is a central component of our strategy and our business. Hand in hand with our leading role as a financier of renewable energies, we want to regularly appear on the market as an issuer of green bonds in the future," says Köhler. "The credibility of our issues is of central importance to us. We therefore focus on the highest quality in the underlying project portfolios and maximum transparency in the design of our refinancing instruments. This is how we satisfy increasingly demanding sustainability investors"
Further information on how sustainability is anchored in DZ BANK's core business can be found at wertewelt.dzbank.de