Berlin Hyp AG issued a €500 million green pfandbrief, the second of its kind issued by the bank.
The notes carry a coupon of 0.125% and a term of just over six years. The order books were opened with an initial guidance of 12 basis points below midswaps, before the re-offer spread was set at 14 basis points below midswaps.
Berlin Hyp issued its first green pfandbrief in April 2015. It also issued a €500 million senior unsecured green bond in September 2016.
"We draw on our green bonds to refinance loans for energy-efficient and sustainable buildings," said Gero Bergmann, a Berlin Hyp management board member responsible for capital markets. He added that the company aims to have green building financing make up 20% of its loan portfolio by 2020.
Commerzbank, Crédit Agricole, J.P. Morgan, LBBW and UniCredit Bank acted as the book runners.