Deutsche Bank is planning to issue its first green bond after the Pentecost holiday, two people familiar with the matter said, adding it would have a volume of 500 million euros ($556 million).
Deutsche Bank declined to comment.
Green bonds are a category of fixed-income securities that raise capital for projects with environmental benefits. Global green bond issuance is expected to be between $300-$375 billion this year, which would be a new record.
Previously, Deutsche Bank has established a comprehensive framework and can, with immediate effect, raise funds for refinancing by issuing its own green bonds. This will enable the bank to raise funds for further developing renewable energy sources or for projects aimed at boosting energy efficiency.
“Green” assets include loans and investments in companies, assets or projects that focus on renewable energy, energy efficiency and so-called green buildings that are built according to environmental and sustainability standards.
Deutsche Bank’s Green Bond Framework is based on the Green Bond Principles of the International Capital Market Association (ICMA) as well as on the latest guidance in the EU Taxonomy developed by the European Union’s Technical Expert Group on Sustainable Finance.
The independent consulting firm Institutional Shareholder Services ESG (ISS ESG) has reviewed the bank’s Green Bond Framework and issued an expert opinion, confirming not only the bank’s exemplary conduct but its consistency with the UN Sustainable Development Goals.
As part of its evaluation, the consulting firm assessed the bank’s ESG performance, giving it “Prime” status (C rating). This ranks Deutsche Bank in eighth place among 281 companies that have been assessed in the category financial institutions/banks and capital market.
Source Reuters