- Issue volume of € 500 million with a term of 5 years
- Largest order book in the history of NORD/LB
- Funds are used to finance particularly energy-efficient buildings
NORD/LB Norddeutsche Landesbank successfully issued a Green Pfandbrief with a benchmark volume of € 500 million yesterday. The mortgage Pfandbrief has a term of 5 years and is expected to receive a Moody's rating of Aa1.
The Green Pfandbrief met with extraordinarily strong demand on the market. The order book was more than five times oversubscribed with almost 100 individual orders and over € 2.7 billion. This is the largest order book in the history of NORD/LB.
The bond was primarily issued to institutional investors in Europe, with strong demand from Spain and Italy. The coupon is 2.25 per cent and the yield is 2.33 per cent, which represents a one basis point premium to the swap midpoint.
The funds raised through the issue are used exclusively for environmentally sustainable financing. Particularly energy-efficient buildings, so-called green buildings, are financed. At least once a year, a report is prepared in which, among other things, the savings in CO2 emissions per million euros invested are published.
NORD/LB is thus once again offering institutional investors the opportunity to invest in a "green" product defined according to strict criteria, which at the same time has a high credit rating.
This is NORD/LB's second Green Pfandbrief after the bank made its debut in this product category in September 2021. The bond, which is secured with real estate loans, follows the criteria of the "Green Pfandbrief" brand, which was developed by the Association of German Pfandbrief Banks (vdp) with significant input from NORD/LB.
Sustainability is an essential building block in the ongoing transformation of NORD/LB. The Bank has also committed itself to this by signing the Principles for Responsible Banking.
In the past NORD/LB conducted its real estate business mainly through the subsidiary Deutsche Hypothekenbank, which was fully integrated into the parent company on 1 July 2021. Commercial real estate financing business will remain a core business segment in the NORD/LB Group.
NORD/LB Norddeutsche Landesbank is one of the leading German commercial banks. The core business segments include business with corporate customers, private and commercial customers including private banking as well as special finance in the energy and infrastructure sector, aircraft finance and commercial real estate finance. The bank is headquartered in Hanover, Brunswick and Magdeburg and has branches in Bremen, Oldenburg, Hamburg, Schwerin, Düsseldorf and Munich. Outside Germany NORD/LB is represented by a Pfandbrief Bank (NORD/LB Covered Bond Bank) in Luxembourg and branches in London, New York and Singapore.