Deutsche Bank launches first green bond
Deutsche Bank has placed its first green bond in the market, in order to finance the bank’s own sustainable projects, which include expanding renewable energy. This comes after the bank pledged in May to almost double green financing activities by 2025.
The bond has a tenor of six years and a volume of EUR500 million with a coupon of 1.375 per cent. In mid-May, Deutsche Bank established the necessary framework for a green bond and also set itself concrete sustainability targets.
"Issuing our own green bonds is a further building block of our sustainability strategy," says CEO Christian Sewing. "As one of the few global financing houses, we can and want to help shape the transformation to a low-carbon economy. Green bonds for our own account and for our customers are an important instrument in this respect.”
Deutsche Bank's Green Bond Framework defines the assets with which the bond is backed and what the proceeds may be used for. "Green" assets include loans and investments in companies, assets or projects in the fields of renewable energy, energy efficiency and so-called green buildings, which are constructed according to ecological and sustainable standards.
The bank's framework follows the principles for green bonds of the International Capital Market Association (ICMA) – an industry association of capital market participants that has been the standard-bearer in the sustainable bond market since 2014. In addition, the framework also follows the latest guidelines of the Technical Expert Group on EU Taxonomy, the future classification system for sustainable investments within the European Union.