The bond has a term of 6 years and an annual interest rate of 0.125 per cent. Investor interest in the offering was strong, with the orderbook 2.8x oversubscribed.
Gewobag is a social housing company and one of the key players in providing affordable housing in Berlin. The net proceeds of the bond issue are intended to be used for eligible social assets, which contribute to affordable housing.
The bond was issued under Gewobag’s newly established EUR 5 billion debt issuance programme. Bonds issued under the programme are intended to be admitted to trading on the Euro MTF operated by the Luxembourg Stock Exchange.
Clifford Chance frequently advises corporate issuers and arranging banks on the establishment of debt issuance programmes as well as on bond issues under such programmes, particularly in connection with ESG-related transactions and bond issues of real estate companies.
The Clifford Chance team advising Gewobag comprised partner Sebastian Maerker, senior associate Wolfgang Ettengruber as well as associate Sarah Buschmann and transaction lawyer Steffen Braun (all Capital Markets, Frankfurt).
