Green Banking

Deutsche Hypo issued its first Green Pfandbrief in November 2017. This successful lighthouse project was preceded by intensive preparation, in which numerous processes in the bank were adapted to the green buildings in the portfolio.

By issuing Green Bonds, the bank also intends to meet the measurably growing demand of investors for investments in environmentally sustainable projects. The issuing of Green Bonds is part of the bank’s attempts to meet society’s objective of reducing global warming in its role as a financial intermediary.

When issuing Green Bonds, Deutsche Hypo funds itself through bonds whose raised funds are used exclusively to finance energy-efficient (i.e. green) buildings. The bank issues unsecured bonds as well as Pfandbriefe as green bonds. The Pfandbriefe it issues fulfil all requirements under the German Pfandbrief Act. Senior unsecured bonds issued as green bonds are pari passu with other bonds of the same asset class, which may include issues in benchmark format as well as smaller volumes (private placements).

Green Loan

Following the successful implementation of the Green Bond, the Green Loan is the logical extension of the sustainability concept in Deutsche Hypo’s core business. The demand for “green financial products” by investors and borrowers is growing ever stronger, to which the European Commission is responding with draft laws and banks with innovative financial products.

Deutsche Hypo’s objective is to ensure the necessary sustainability aspects in its business activities on the assets and liabilities side by granting green loans and issuing green bonds. A Green Loan can be granted for selected Green Buildings.

A Green Building is…

  • a modern, contemporary and future-oriented building,
  • with a good to very good location for the specific type of use,
  • which is particularly energy-efficient thanks to energy-efficient plant technology and very good energetic properties,
  • and third party usability.

A Green Loan is the financing of such a Green Building. For customers of Deutsche Hypo, a green loan offers the advantage of a margin reduction of five to ten basis points. Please speak to your contact person and learn more about the advantages of a Green Loan financing.