German listed residential property firm Vonovia has announced that it is raising €600 mln through the issue of its first green bond.
The 10-year facility was five times oversubscribed and will bear a 0.625 % interest per year.
In a statement, Vonovia said that the issue marks further progress on its sustainability strategy, with the firm recently committing to a binding green path for a virtually climate-neutral building stock by 2050.
‘We have been systematically reducing the carbon footprint of our buildings from the 50s and 60s since 2015 through energy-efficient modernization. We are also building energy-efficient new constructions. Nowadays, investors expect companies to conduct their business in a sustainable manner. Thus, the green bond is the perfect combination,’ said Helene von Roeder, Vonovia's Chief Financial Officer. ‘Furthermore: Green bonds are a future-oriented addition to our financing strategy that we can already use today to further expand our investor base.’
Vonovia plans to use the additional liquidity to refinance sustainability projects in Germany, Austria and Sweden. These include investments in buildings, for example through new construction or modernization projects that lead to higher energy efficiency and that were initiated within the last 36 months. Other investment projects include renewable energy, for instance generating solar energy through additional photovoltaic installations.
‘We will continue to make comprehensive investments to achieve our goal of establishing a virtually climate-neutral portfolio by 2050,’ added Helene von Roeder.
