BayernLB arranges first-ever green bond for HYPO NOE

Munich – BayernLB, along with a number of other mandated syndicate banks – Credit Agricole CIB, DekaBank, DZ Bank and Raiffeisen Bank International – has arranged the first green bond ever to be issued for the Austrian HYPO NOE Landesbank für Niederösterreich und Wien AG. The EUR 500m senior preferred issue with a four-year term will help finance “green” buildings. Unlike their conventional counterparts, these structures offer a cumulative CO2 savings potential of nearly 10,000 tonnes a year. The green bond met with enormous interest from the investors and was placed very successfully with a final order book of over EUR 1bn and a +80-bp mid-swap spread.

“We are thrilled to see such great amount interest and so many individual orders coming in from a wide range of investors. This is encouraging us all the more to continue expanding our activities in the sustainability segment. Our successful sustainability programme has put us at No. 1 in the ISS ESG ranking in Austria,” noted Wolfgang Viehauser, HYPO NOE Management Board Member.

“Sustainability is a top priority for investors. This is evidenced by the extraordinary success of the transaction and the highly granular and sophisticated order book. Over 130 investors took part, 60 percent of which with an eye towards sustainability,” said Michael Bücker, BayernLB’s Board of Management Member and head of the Bank’s Corporates & Markets segment. “This is an inspiring indicator of the bond’s value and underscores BayernLB’s expertise in, and commitment to, green issues.”

HYPO NOE is the largest and oldest Landesbank in Austria. It provides financing for housing, companies and infrastructure in Austria and for selected projects of these kinds elsewhere in the EU.