BayernLB

First-ever blue social bond - green and social

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BayernLB arranges world’s first “blue” social bond for DKB

BayernLB, acting as joint lead arranger, has placed the world’s first blue social bond, for DKB. The blue social bond is used especially for refinancing the municipal water supply and sewage business. The Pfandbrief, which is part of BayernLB subsidiary DKB’s social bond programme, fulfils both the Social Bond Principles (SBP) and the UN’s Social Development Goals (SDGs), in particular SD’6 for clean water.

“The placing of DKB’s first blue social bond was a great success for all involved. Investors’ growing interest in sustainable investments is clear to see in the order books,” explained Dr Jörg Senger, head of the Sales & Origination Division in BayernLB’s Financial Markets Business Area. Around 90 investors contributed to an order book that was four times oversubscribed. The social Pfandbrief is underpinned by a “blue” lending pool of EUR 1.3 billion from DKB’s social bond programme. It was issued jointly with ABN Amro, DZ Bank, Natixis and UniCredit. Once again, BayernLB demonstrated extensive expertise in structuring and placing green and sustainable securities.

Armin Hermann, head of the Treasury Division at DKB, commented: “the overwhelming success of this transaction strengthens our resolve to pursue our sustainable strategy in capital market financing. Sustainability is not just a label for us – every bond allows an in-depth, transparent insight into our core business. And that's what it’s all about.”