- Issuance volume of one billion euro with a term of 3.75 years
- Coupon is 2.625 per cent
- Funds will be used to finance particularly energy-efficient buildings
NORD/LB Norddeutsche Landesbank today issued the first Green Pfandbrief benchmark bond in the 2025 financial year. The one billion euro Pfandbrief with a coupon of 2.625 per cent has a term of 3.75 years and is expected to receive a Moody's rating of Aaa. With a denomination of €1,000, the Pfandbrief is also suitable for retail investors.
The final order book counted around 180 individual orders with a volume of €5bn. The issuance was therewith 5 times oversubscribed. The bond was placed primarily with German investors (53 per cent). Further demand came from Northern Europe (12 per cent), Austria and Switzerland (9 per cent), Southern Europe (9 per cent) and the Benelux countries (7 per cent), among others.
This is the first green benchmark issuance in accordance with the updated standards for green Pfandbriefe of the Association of German Pfandbrief Banks (vdp) and NORD/LB's first one billion euro Pfandbrief since 2018. The funds raised through the issue will be used for environmentally sustainable financing. Particularly energy-efficient buildings, so-called green buildings, are financed. Once a year, a report is prepared on the utilisation of the funds and the estimated climate impact of the issue proceeds collected.
The transaction is NORD/LB's seventh Green Pfandbrief, following the bank's debut in this product category in 2017. The last Green Pfandbrief in EUR benchmark format was issued by NORD/LB in October last year. NORD/LB is thus once again offering investors the opportunity to invest in a "green" product that also has the highest credit rating.
About NORD/LB
NORD/LB Norddeutsche Landesbank is one of Germany's leading commercial banks. As an institute under public law, it is part of the S-Finance Group. Its core business segments include corporate customers, special financing in the energy and infrastructure sectors, financing commercial real estate via Deutsche Hypo, capital market business, association business with the savings banks and private and commercial customers including private banking. The bank is based in Hanover, Braunschweig and Magdeburg and has branches in Oldenburg, Hamburg, Schwerin, Düsseldorf and Munich. Outside Germany NORD/LB is represented by a Pfandbrief bank (NORD/LB Covered Bond Bank) in Luxembourg and by branches in London, New York and Singapore.
