- Issue volume of 500 million euros with a term of 5 years
- Funds raised will be used to finance particularly energy-efficient buildings
- Bürkle: "NORD/LB is one of the top addresses for financing 'green buildings’”
NORD/LB Norddeutsche Landesbank successfully issued its first Green Pfandbrief today. The benchmark bond with a volume of 500 million euros has a term of 5 years and is expected to have a Moody's rating of Aa1. The Green Pfandbrief is secured by a cover pool of real estate loans.
NORD/LB is thus 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.
The funds raised through the issue are used exclusively for ecologically 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.
The then subsidiary Deutsche Hypo had already issued a Green Pfandbrief in 2017. This was the world's second ever issue of a Green Mortgage Pfandbrief.
Thomas Bürkle, Chairman of the Managing Board of NORD/LB, said: "Our bank has long been one of the leading players in Europe when it comes to financing renewable energies. NORD/LB is now also one of the top addresses for green buildings. We will consistently continue along this path."
Issue four times oversubscribed
The Green Pfandbrief issued today was primarily issued to institutional investors in Europe and Asia. The coupon is 0.01%, the yield is minus 0.305%, which corresponds to a discount to the swap midpoint of one basis point. The order book was more than four times oversubscribed at €2.2 billion.
The covered bond complies with 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 a fundamental element in the ongoing transformation of NORD/LB. The bank has also committed itself here 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 Group parent company on 1 July 2021. Commercial real estate financing business will remain a core business segment in the NORD/LB Group in the future.
Further information on the Green Pfandbrief and sustainable financing at NORD/LB:
Press release as PDF-Download
NORD/LB Norddeutsche Landesbank is one of the leading German commercial banks with total assets of EUR 117 billion. 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.