Berlin Hyp has issued its second ‘green’ Pfandbrief, representing the German bank’s third green bond issue since 2015.
The covered bond has an issue volume of €500 million and a term of just over six years. It carries a 0.125 percent coupon and has been rated Aaa by Moody’s.
The German bank issued its first green Pfandbrief in April 2015 and a separate green senior unsecured bond in September 2016. The latter bond issue made Berlin Hyp the first bank to issue green bonds in more than one asset class.
Berlin Hyp bases all the green bonds it issues under its green bond programme on the established Green Bond Principles. Positive sustainability performance is certified through a second party opinion provided by rating agency oekom.
“Once again, the significant oversubscription and the high percentage of socially responsible investors in the order book are testament to the fact that we have our finger on the pulse when it comes to our green bond program,” said Gero Bergmann, member of the Berlin Hyp board of management responsible for capital markets.
“We draw on our green bonds to refinance loans for energy efficient and sustainable buildings. This business is particularly important to us, which is why we decided this spring to anchor the financing of green buildings as a strategic target. The aim is for green building financing to make up 20% of our loan portfolio by 2020.”
A consortium comprising Commerzbank, Crédit Agricole, JP Morgan, LBBW and UniCredit Bank opened the order books yesterday morning with initial guidance of mid-swap -12 basis points. The syndicate banks received orders exceeding €900 million and closed the order books at noon.
The re-offer spread was set at mid-swap -14 bps. The majority of the bond, 53 percent, went to domestic investors, followed by investors from the Benelux (18 percent) and the UK and Ireland (13 percent).
The largest group of investors were central banks and official institutions, which accounted for 43 percent of subscriptions. Asset management companies and banks and savings banks accounted for 31 percent and 26 percent of subscriptions, respectively. Berlin Hyp also pointed out that 45 percent of the green Pfandbrief went to socially responsible investors.