Listed German residential property investor Vonovia has raised €2.5bn via social and green bonds to finance projects.

Vonovia said it has issued two social bonds with terms of 3.85 and 6.25 years for the first time, as well as a green bond with a term of 10 years for the first time issued that is 100% compliant with the new EU taxonomy.

Philip Grosse, the CFO of Vonovia, said: “The bonds are proof of our social responsibility and our sustainability strategy. Investors today expect exactly this from companies.”

Vonovia said part of the funds will also be used to refinance sustainable projects in Germany, Austria and Sweden.

“We still have stocks from the 1950s and 1960s that have not been renovated. That is why we have been working consistently since 2015 to reduce the CO2 footprint of the buildings through energy modernisation.

”The currently rising energy prices show how important it is for tenants to reduce heating costs,” Grosse said.

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