German lender Berlin Hyp has issued its second green senior unsecured bond with a volume of €500 mln and a coupon of 1.125%.
The ten year bond is rated A1 and A+ by Moody's and Fitch respectively and represents the bank's fourth green bond in benchmark format so far.
According to the lender, since debuting with the first Green Pfandbrief in 2015, Berlin Hyp has issued green bonds with a total volume of € 2 bn, making the bank the most active green bond issuer in the European commercial banking segment.
'The significant oversubscription of the bond and the large percentage of sustainable investors, coupled with the recent upgrade in our sustainability rating, show that we are on the right track with our sustainability strategy,' commented Gero Bergmann, member of the board of management of Berlin Hyp.
German investors signed 49% of the green bond, while foreign interest reached 51%, which Berlin Hyp said was the highest non-domestic commitment for a senior unsecured issue. It was dominated by investors from France and Benelux with 11% each, followed by Iberian and British investors with 7% and 6% respectively.
Asset managers and banks accounted for 51% and 38% of investment respectively, while 45% of the green bond went to socially responsible investors.
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 a property's energy efficiency, but also include other sustainability criteria.
