DZ BANK issues third own green bond - refinanced offshore projects increase reliability of sustainable power generation
• Green bond with a volume of EUR 300 million placed on the market; almost twofold over-subscription shows the high interest among sustainability-oriented investors
• Senior non-preferred structure, as in 2020
• Financing offshore projects in Europe
• Board Member with responsibility for Capital Markets: "With the green bond, we are helping to increase the reliability of sustainable power generation."
Following on from 2018 and 2020, DZ BANK has placed its own third green bond on the market. The bond, which is valued at EUR 300 million and has a seven-year term, was very well received by investors in Germany and abroad. With an order volume of almost EUR 550 million, it was oversubscribed almost twofold. It was structured as a senior non-preferred bond and thus follows on from the successful product structure of the previous year.
"Green bonds are now an established means of refinancing for DZ BANK, something which is both valued and now also expected by sustainable investors. We know this from numerous meetings," says Wolfgang Köhler, Member of the Board of Managing Directors of DZ BANK with responsibility for Capital Markets. "For this reason, we decided to issue a green bond again this year."
The Bank implemented the transaction itself, based on its proven expertise in the sustainable financing sector, and structured the bond according to the current Green Bond Principles of the International Capital Markets Association (ICMA). Standard & Poor's Global Ratings (S&P), the rating agency commissioned for an independent sustainability assessment, rates the bond with a very high environmental rating of 86/100 and a strong score in terms of governance and reporting based on its Green Transaction Evaluation.
Investors include not only players from the cooperative financial network, but also numerous sustainability-oriented investors outside the Group from Germany and abroad.
Utilisation of the funds for European offshore projects
The green bond references a portfolio with offshore projects in Germany, France, Great Britain and the Netherlands. "Offshore projects are very efficient in terms of generating energy, as they produce on average twice as much electricity as comparable plants on land due to the high wind speed at sea", says Wolfgang Köhler. "With the green bond, we are helping to increase the reliability of renewable energies in the supply of electricity in Europe. The energy transition can only succeed if sustainable power generation is stable."
The approach of focusing on offshore projects is in line with the European Union's strategy to promote offshore facilities for a balanced sustainable energy mix. Offshore portfolios are also recognised by investors as a particularly sustainable asset class, as the installations do not use up any land, which is in short supply.
Further information on how DZ BANK anchors sustainability in its core business can be found at wertewelt.dzbank.de
