Joint “Green Schuldschein” label gets ready to launch


Joint “Green Schuldschein” label gets ready to launch

BayernLB has helped develop the new quality seal headed up by the VÖB

Munich/Berlin - BayernLB has joined forces with four other Landesbanks and the Association of German Public Banks (Bundesverband Öffentlicher Banken - VÖB), to develop a new label for green Schuldschein note loans. With the “Green Schuldschein” that is being launched, the five market-leading banks in the segment, together with the Association, are setting a green quality standard for the widely used corporate finance instrument. Schuldscheins are an attractive financing option, especially for medium-sized companies.

BayernLB is one of Germany’s pioneers in the field of green Schuldscheins. For example, back in 2019 it placed the largest green Schuldschein issue in the world for a car manufacturer, in a more than EUR 1 million transaction for Porsche AG. “Based on our market experience, we were on board right away with the VÖB’s initiative to support the still relatively new segment of the green Schuldschein market with a quality standard,” said Paul Kuhn, Head of Debt Capital Markets at BayernLB and Chairman of the Green Schuldschein Label Committee.

A Schuldschein note loan that bears the VÖB label in future will only provide financing with an environmental purpose. The use of funds is based on the six environmental goals of the EU taxonomy regulations on sustainable fi-nance (climate change mitigation; climate change adaptation; the sustainable use and protection of water and marine resources; the transition to a circular economy; the protection and restoration of biodiversity and ecosystems; and pollution prevention and control. An independent assessment by third par-ties ensures the use of funds complies with the taxonomy and assures the positive environmental and climate effects are evaluated. In addition, the rules of the label include a commitment to provide regular reporting on the use of funds and impacts achieved.