Green energy in Germany: A landesbank on the move

17/02/2021

BayernLB has issued its first sustainable benchmark bond and its debut Senior Non-Preferred bond in February with Societe Generale as joint bookrunner. The proceeds will be used to fund solar and wind power projects.

The EU wants to become a climate-neutral economy by 2050. One important pillar of this strategy is to maximize the deployment of renewable energy sources. 

BayernLB, one of the leading commercial banks for large and medium-sized customers in Germany, has been committed to environmental and climate protection for more than 25 years. It is for instance a long-standing member of the UNEP Finance Initiative and also a member of the Climate Bond Initiative to promote the development of the sustainable bond market, which BayernLB regards as making an important contribution to financing environmental and climate protection. 

As part of its Sustainable Financing Framework, the bank is focusing on financing the expansion of renewable energies and other projects that help mitigate climate change. Its eligible project financings under the framework currently comprise €2.4 billion.
 

“ We are delighted by the success of our first green bond. With this deal, we are further supporting the energy transition and responding to the market’s growing demand for green finance products, ”

Miriam Scuka,
Head of Strategic Asset Liability Management, BayernLB

BayernLB’s first sustainable bond, issued in February 2021, contributes to the financing of solar and wind projects. Societe Generale acted as Joint Bookrunner on the €500m 7-year deal, the debut Senior Non-Preferred and debut green bond for the Bavarian Landesbank.

The transaction was met with especially high interest from German and French investors and saw 43% participation from investors dedicated on responsible investing. 

“ Societe Generale has a group commitment of EUR 120bn to finance the energy transition. Green bonds are a very important element of this strategy. We are grateful for the trust BayernLB put in us and proud to have brought another very strong green bond to market, ”

Simon Holz,
Head of Financial Institutions Debt Capital Markets Germany, Austria, Switzerland & Netherlands, Societe Generale