DZ HYP issues green dual tranche of 1 billion euros
10.01.2023
- Green Mortgage Pfandbriefe for 3 years and 10 years
- Volume per term: 500 million euros
- 45 per cent ESG investors
On Monday, 9 January 2023, DZ HYP successfully issued two green benchmark bonds on the market as part of a dual tranche. The proceeds raised will be used to finance sustainable real estate in Germany in a targeted manner. With this transaction, DZ HYP continues its path towards becoming a permanent issuer of sustainable bonds.
The transaction was supported by a syndicate consisting of Crédit Agricole, Danske Bank, DZ BANK, Intesa Sanpaolo, Nord LB and UniCredit.
Following the announcement of the transaction last Friday, the order book was opened on Monday morning with a spread for the three-year tranche of +1 basis point and +16 basis points for the ten year over mid swap. Thanks to very strong and steady investor demand, the combined books grew to over 5.3 billion euros. The final spreads were set at -4 basis points for three years and +13 basis points for ten years due to the oversubscription of both tranches. Both bonds carry a coupon of 3 per cent.
With a share of approx.. 45 per cent, ESG investors made a significant contribution to the success of this transaction. The largest share of overall investors came from Germany, at around 68 per cent. There was also strong demand from the Benelux countries with 13 per cent. In addition, investors from Austria and Switzerland together accounted for 8 per cent and from Scandinavia for 5 per cent.
"In the previous year, we have increased our dedication towards sustainable real estate financing. The success of our Green Dual Tranche proves that investors appreciate our commitment and entrust us with their funds for a sustainable transformation of the real estate sector. This encourages us to continue on our current path", said Dr Georg Reutter, Chairman of the Management Board of DZ HYP.
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