Green Evaluation: DZ BANK AG Proposed €250 Million Fixed-Rate Preferred Senior Notes, Oct. 2, 2018
DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main (DZ BANK) has issued €250 million of fixed-rate preferred senior notes due October 2023 as part of its ongoing debt issuance program (ISIN Code: DE000DDA0NB1). The issuance represents DZ BANK's first labelled green bond.
DZ BANK has allocated the issuance proceeds to a portfolio of loans originated for operational onshore wind power projects in Germany. The portfolio currently consists of 60 projects across 11 different federal states with a total installed capacity of about 738 megawatts (MW). DZ BANK's total credit exposure to the portfolio is currently about €433 million by way of non-recourse project finance loans to these projects. In 2017 the portfolio avoided greenhouse gas emissions amounting to the equivalent of about 790,000 tons of CO2, as estimated by DZ BANK based on emissions factors published by the German Environment Agency. In our opinion, this transaction is aligned with the Green Bond Principles 2018 (GBP).