DZ HYP successfully places Green debut bond

• Volume amounts Euro 1 billion
• Maturity of seven years and nine months
• Issuance meets the vdp Minimum Standards for Green Pfandbriefe

DZ HYP successfully placed its first Green Pfandbrief on the market on Tuesday, 15 February 2022. The issuance was preceded by a roadshow lasting several days, during which the details of the newly published DZ HYP Green Bond Framework were presented. The proceeds raised from the issue will be used to specifically finance sustainable real estate. In addition to the usual high quality requirements of the Pfandbrief Act, the Green Pfandbrief also meets the vdp Minimum Standards for Green Pfandbriefe. Furthermore, the DZ HYP Green Bond Framework is based on the ICMA Green Bond Principles. This was confirmed by the sustainability rating agency ISS-ESG in a second party opinion.

The Euro 1 billion Green Mortgage Pfandbrief carries a coupon of 0.75 per cent and has a maturity of seven years and nine months. The final spread was set at midswap -1 basis point (versus 6M Euribor) during the bookbuilding process. The issue was supported by a syndicate consisting of DZ BANK, Crédit Agricole, ABN Amro, Bayern LB, NatWest and UniCredit, with DZ BANK and Credit Agricole acting as structuring advisors.

The high demand led to an allocable final order book volume of Euro 2.0 billion, which was carried by 90 investors. As expected, the largest share came from Germany with 63 per cent. Strong demand also came from Asia with 10 per cent as well as Austria/Switzerland with a total of 9 per cent and Scandinavia with 7 per cent. The remaining volume was distributed among the BeNeLux states with 5per cent, France with 4 per cent and other regions with 2 per cent. With a share of 33 per cent, ESG investors played a significant role in the order book.

"As a leading real estate and Pfandbrief bank in Germany, we are pleased to have reached an important milestone on the way to achieving the Paris climate targets through the issuance of our first Green Pfandbrief. The positive feedback from our investors encourages us to establish sustainable funding as an integral part of DZ HYP's business model in the future," underlines Dr Georg Reutter, Chairman of the Management Board of DZ HYP.