Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) has, for the first time, successfully placed its own green bond in the market. The bond has a tenor of six years and a volume of 500 million euros with a coupon of 1.375 percent. The proceeds of the issue will be used exclusively to refinance the bank’s own sustainable projects, such as the expansion of renewable energies. 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," said 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.
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