DZ BANK issues fourth green bond – onshore wind projects strengthen reliable power supply
- Green bond with a volume of €300 million launched on the market; issue returns referenced to onshore wind projects in Germany
- 2.6 times oversubscription underscores high interest among sustainability-oriented investors
- S&P rates the bond as dark green (highest level) according to its “Shades of Green” methodology
DZ BANK has launched another green bond on the market. The bond, with a volume of €300 million and a term of six years, was in high demand among national and international investors. With an order volume of around €790 million, the issue was 2.6 times oversubscribed. In addition to institutions from the Genossenschaftliche FinanzGruppe investors include numerous sustainability-oriented investors outside the group from Germany and abroad.“The high level of interest among investors shows that sustainability has now become firmly established in capital investment and cannot be reversed,” comments Souâd Benkredda, Member of the Board of Managing Directors at DZ BANK. “We are very pleased to be able to offer our investors a green bond that meets their need for sustainable investment products.”
The broad acceptance of this transaction among institutional investors underscores DZ BANK's high level of expertise in sustainability in the capital markets business. The bond was again structured as a senior non-preferred bond, continuing the successful product structure of previous years. DZ BANK implemented the transaction itself and structured the bond in accordance with the current Green Bond Principles of the International Capital Market Association (ICMA). The rating agency S&P Global Ratings, which was commissioned to conduct an independent sustainability assessment, classifies the green bond as “dark green” (highest level) under its “Shades of Green” methodology.
The green bond primarily references a portfolio of onshore wind projects in Germany. “As one of the largest financiers in this area, we are contributing to the expansion of renewable energies in Germany with the green bond. Sustainable forms of energy support the domestic economy and strengthen independence from fossil fuels – an important factor in view of geopolitical shifts,” Benkredda continued.
Against the backdrop of the COP30 World Climate Conference currently taking place in Belém, Brazil, which is focusing, among other things, on the further development of global climate financing and the expansion of renewable energies, DZ BANK is sending a clear signal: capital markets are making a key contribution to the energy transition.
The focus on onshore projects is in line with the European Union's strategy of promoting the expansion of onshore and offshore wind energy, thereby fostering a balanced, sustainable energy mix.
Mirja Lehleuter
Spokesperson
(Corporate Customers and Capital Markets)
