Berlin Hyp issues 4th green pfandbrief amid strong international interest

German lender Berlin Hyp said it has successfully issued its fourth green pfandbrief, bringing the total volume of outstanding green bonds to €3.5 bn.

The eight-year, €500 mln bond, bearing a coupon of 0.01% and rated Aaa by Moody's, generated €1.7 bn of from 78 investors at the close of the order book on Wednesday.

More than half the bond was placed abroad (59%), with investors from Scandinavia (13%), UK (9%), Asia and France (8%) showing particular interest. Banks ordered 48% of the bond, while funds participated with 30%. A further 22% went to central banks and official institutions. Savings banks and affiliated companies subscribed to almost 19% of the issue. The share of socially responsible investors (SRI) in the final order book was 51%.

Berlin Hyp will use the proceeds from the issue to refinance loans for green buildings. The applicable criteria for classification as a green building are predominantly based on the energy efficiency of a commercial property, but also include other sustainability criteria.

'We are delighted to see that our Green Pfandbrief has met with such great interest. The high demand from international and SRI investors shows once again that we are on the right track with our Green Bond concept and encourages us to continue this strategy bravely,' said Gero Bergmann, Berlin Hyp's management board member responsible for capital market business.


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