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Deutsche Bank makes green bond debut

The German bank has successfully placed it own green bond in the market for the first time.

It has a tenor of six years, a volume of €500m and a coupon of 1.375%.

Setting the structure

In mid-May, Deutsche Bank established its Green Bond Framework and also set itself concrete sustainability targets.

The framework defines the assets with which the bond is backed and outlines 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 building; which are constructed according to ecological and sustainable standards.

It follows the principles for green bonds of the International Capital Market Association.

In addition, the framework also follows the latest guidelines from the Technical Expert Group on EU Taxonomy.

Important instrument

“Issuing our own green bonds is a further building block of our sustainability strategy,” said chief executive 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.”

Kirsten Hastings

Kirsten is international editor of Expert Investor and International Adviser. She joined Last Word Media in October 2015. Kirsten has a Masters in Financial Journalism from the...

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