Berlin Hyp has issued its second unsecured ‘green’ Pfandbrief, representing the German bank’s fourth green bond issue since 2015, with a total volume of €2 billion.
The senior unsecured bond has an issue volume of €500 million and a term of 10 years. It carries a 1.125 percent coupon and has been rated A1 and A+ by Moody’s and Fitch, respectively.
Order books were opened at 9am yesterday by a consortium comprising ABN Amro, Commerzbank, Credit Agricole, JPMorgan and LBBW with a guidance of mid-swap +50 basis points. The syndicate received 138 orders worth around €1.3 billion and closed the books at 11.30am. The re-offer spread was set at mid-swaps +40bps.
Demand from foreign investors accounted for 51 percent, mostly from France and Benelux with 11 percent each, followed by Iberian and British investors with 7 percent and 6 percent, respectively.
The green bond was “well received” among asset managers and banks, which accounted for 51 percent and 38 percent of investment respectively, the German bank said. It also noted that 45 percent of the bond went to socially responsible investors.
“The significant oversubscription of the bond and the large percentage of sustainable investors, coupled with the recent upgrade in our sustainability rating, show that we are on the right track with our sustainability strategy,” said Gero Bergmann, member of the board of management at Berlin Hyp.
Berlin Hyp uses the proceeds from the issue to refinance loans for green buildings. Its aim is to increase the percentage of green building financing in the loan portfolio to 20 percent by 2020.