German listed property firm Vonovia has issued an unsecured social bond with a total volume of €850 mln and a term of 10 years.
The bond carries a coupon of 4.25% was 4.8 times oversubscribed.
'This ten-year social bond is a proof that we can combine our social responsibility with our excellent access to the capital market. We took advantage of the very strong market environment opportunistically,' commented Philip Grosse, CFO of Vonovia. 'With the only euro bond on the market, the full focus was on Vonovia. The result: a qualitatively very strong order book with more than 250 orders and a slightly negative new issuance premium.'
Vonovia issued its first social bond two years ago. The social bond is used to finance social projects. These include occupancy-based apartments for low-income households, as well as privately financed apartments in Berlin that provide access to affordable housing with a rent of at least 15% below the local comparable rent. The funds from the social bonds will also be used for low-barrier apartments, which will be modernized to better meet the needs of an aging society.
