BayernLB issues €500m green pfandbrief amid strong international interest

German lender BayernLB said its latest green mortgage pfandbrief with a volume of €500 mln met with strong investor demand and was almost five times oversubscribed.

In addition to institutional investors in Germany, the bank said a significant portion of the issue was placed with international investors, despite very tight pricing. Overall, well over 50% of investors had an ESG background.

For the first time, an additional real estate portfolio that complies with the ICMA Green Bond Principles standards was used for the issue, marking an expansion of BayernLB’s Sustainable Financing Framework. This means that in addition to solar energy, wind power and rail transport, the rules now also cover real estate.

Said Gero Bergmann, a member of BayernLB's a member of BayernLB's management board: ‘As early as April, we were able to anchor the credit side of the sustainable real estate business with the Sustainable Lending Framework. With the integration of the sustainable real estate portfolio into the Sustainable Financing Framework, we have now also created the basis for placing green bonds or green mortgage bonds. As a progressive real estate financier, we have thus laid the foundation for making an active contribution to the decarbonisation of the real estate sector.’


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