German property lender Berlin Hyp has announced the placing of its first green Pfandbrief bond of the year with a volume of €500 mln and a coupon of 0.01%.
The eight-year bond was heavily oversubscribed, with the order book reaching a volume of over €1.b bn from 55 investors, Berlin Hyp said. More than half of the bond (54%) was placed abroad, with investors from Scandinavia and UK accounting for 40% of the total.
A further 25% went to central banks and official institutions.
Berlin Hyp said that it plans to use the proceeds from the issue to refinance loans for green buildings.
‘After the corona crisis has also had a significant impact on the financial markets in recent months, we are particularly happy about the successful issue of our fifth Green Pfandbrief today,’ said Gero Bergmann, member of the management board of Berlin Hyp responsible for capital market business. ‘The strong demand from international and SRI investors demonstrates the high standing that Berlin Hyp holds even in uncertain times and that the issue of climate change is meanwhile firmly anchored as an overall topic in the financial market.’
