The Frankfurt capital markets team led by Partner Jochen Seitz assisted ABN AMRO Bank N.V., Bayerische Landesbank (technical lead), Commerzbank Aktiengesellschaft, Crédit Agricole Corporate and Investment Bank and UniCredit Bank AG on the issuance of a Green Bond by Deutsche Kreditbank AG (DKB).
On February 23, 2021, the Green Bond was issued in the form of senior unsecured preferred notes with an issue volume of EUR 500 million. The Green Bond has a term of five years. With an issue price of 100.155 per cent. and a coupon of 0.010 per cent. p.a., the yield is minus 0.021 per cent. For uncovered bonds issued by financial institutions, a negative yield is an absolute novelty.
The Green Bond, which was three times oversubscribed, serves to refinance onshore wind projects and solar projects in Germany in accordance with DKB’s Green Bond Framework. The high proportion of sustainable investors of over 55 per cent. underlines the attractiveness of the Green Bond and the growing demand for capital market products that support ecological or social projects.
According to DKB, its Green Bond Framework complies with the current draft of the EU Green Bond Standard and the requirements of the EU Taxonomy Regulation. The Commission is expected to publish its decision on how to take forward the EU Green Bond Standard shortly, also work on level 2 implementing measures in relation to EU Taxonomy Regulation are still ongoing.
Jochen Seitz and his team have been providing legal advice to DKB on capital market transactions for many years. The team has advised on a number of green and ESG bonds issuances previously.
Hogan Lovells Team
Dr. Jochen Seitz (Partner), Frank Salzgeber (Associate), Nina Fischer (Business Lawyer) (all capital markets law)
