First green hybrid transaction in Germany
Munich – BayernLB has acted as joint lead manager in arranging a green hybrid bond for EnBW, the proceeds of which will be used solely to fund climate-friendly projects. The rating agency ISS-oekom, which specialises in sustainability matters, has confirmed that the EnBW bond complies with the Green Bond Principles. In addition, the green hybrid bond has been certified in accordance with the high standards of the Climate Bonds Initiative (CBI). The tranches have a volume of EUR 500 million each and maturities of around 60 years.
“This transaction has set a new standard,” stated Dr Jörg Senger, Head of BayernLB’s Sales and Origination Division. “Not only is this the first green hybrid from Germany, it is also the first bond issued in accordance with the new EU Prospectus Directive”. A growing number of institutional investors are choosing sustainable investments today. This is pushing climate-friendly considerations to the forefront of business activities, purely because of their increasing economic significance.
EnBW CFO Thomas Kusterer explains: “The green bond was several times oversubscribed within a very short time. That illustrates the capital market’s economic confidence in us and its approval of our strategy. The equity component of the hybrid bond also has a positive impact on our credit profile.”