BayernLB issues its first green subordinated T2 bond with a volume of EUR 500 million

Following début green issues in the commercial paper and senior non-preferred formats at the beginning of this year, BayernLB is now conquering the market for ESG bonds.

Munich– BayernLB has successfully placed its first green subordinated Tier2 bond with a callable structure (10.25nc5.25) on the market. This début transaction, limited to EUR 500 million and rated Baa2 by Moody’s, expands BayernLB’s portfolio of sustainable funding instruments.

The benchmark deal, which in the end was more than 4.4 times oversubscribed, sparked a great deal of interest among institutional investors.Among the 130-strong group of buyers, investors from France and the German-speaking DACH region dominated demand, following by buyers from the UK/Ireland. The relatively high participation of sustainable investors at around 60 percent once again attests to the quality of the Bank’s Sustainable Financing Framework. The significant share of investors located outside the DACH region, amounting to 73 percent, is also a testament to BayernLB’s excellent international reputation.

It was only in January this year that BayernLB very successfully launched its green commercial paper programme, as one of the first issuers in Europe. Other green and social issues by the BayernLB Group followed suit.

“Our Bank’s successful début deal is the result of our many and varied efforts in the field of sustainable banking. The green subordinated bond rounds off our range of sustainable debt instruments andmakes the BayernLB Group one of the most active issuers in the sustainable segment in 2021,” commented Johannes Anschott, member of the BayernLB Board of Management.