UniCredit Bank AG has issued its first Green mortgage covered bond worth EUR 500 million. The bond is secured with real estate mortgages from the bank's pool. The buildings contained therein are particularly energy-efficient and have lower CO2 emissions.
The Green Bond has an AAa rating from Moodys and was issued with a denomination of EUR 1,000 to institutional investors, about half of them from Germany (49 percent). 72 percent of the allocation went to dedicated ESG investors. The coupon is 0.01 percent. The order book was 5-times oversubscribed.
The funds from the Green Bond are intended to finance green buildings registered in the mortgage pool of UniCredit Bank AG. The Bank will continue to continuously identify suitable assets in its pool and initiate new green projects.
Jan Kupfer, Member of the Management Board of HypoVereinsbank – UniCredit Bank AG, responsible for Corporate & Investment Banking, says:
"Sustainability is part of our DNA. As a bank, we want to play our part in the transition to a more sustainable society. The building sector plays a crucial role in achieving the European Sustainable Development Goals. With our first Green Bond, we are financing efficient and sustainable buildings in a targeted manner. The high demand for it shows that interest in sustainable financial products remains high on the investor side as well."
UniCredit Bank AG commits itself to comply with the standards for Green mortgage covered bonds set by the institutions organised in the Association of German Pfandbrief Banks (VdP). The standards provide guidance to issuers and investors.
The issuance further underlines UniCredit's strong commitment to sustainability and the strategic importance of ESG for the Group. The inaugural green bond issuance took place under UniCredit's Sustainability Bond Framework. The framework allows the Group's main issuers UniCredit S.p.A., UniCredit Bank AG and UniCredit Bank Austria to issue green, social, and sustainability bonds, which will be a recurring part of the Group's funding activity going forward.
About HypoVereinsbank / UniCredit
HypoVereinsbank is part of UniCredit, a simple successful pan-European Commercial Bank, with a fully plugged in CIB, delivering a unique Western, Central and Eastern European network to its extensive client franchise. UniCredit offers both local and international expertise to its clients, providing them with unparalleled access to leading banks in its 13 core markets through its European banking network: Italy, Germany, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Serbia, Slovakia and Slovenia. Leveraging on an international network of representative offices and branches, UniCredit serves clients in another 16 countries worldwide.