Aareal Bank has placed a EUR 300 million green Senior Non-Preferred bond with a five-year tenor, with an amount equal to the net proceeds to be used to finance or refinance environmentally sustainable properties and energy efficiency measures under the Wiesbaden-based lender's Green Finance Framework – Liabilities.
The issuance builds on Aareal's established green bond track record and follows its inaugural Green Pfandbrief, a EUR 625 million six-year covered bond issued in May.
GREEN FRAMEWORK BACKS COMMERCIAL PROPERTY LOANS
Aareal said the bond was issued under its Aareal Green Finance Framework – Liabilities, dated October 2023, which is aligned with the ICMA Green Bond Principles and was categorised as "credible and impactful" in a second-party opinion by Morningstar Sustainalytics. An amount equal to the net proceeds will be used to finance or refinance environmentally sustainable properties and energy efficiency measures that support the transition to a low-carbon economy.
FIVE-YEAR TENOR AND SNP FORMAT
The transaction attracted an order book of more than EUR 1.55 billion, over five times the issued volume, which the bank said enabled a significant improvement in pricing during bookbuilding. Aareal said the placement further strengthens its sustainable funding base.
Aareal also recently published its 2025 Allocation and Impact Report, which includes a post-issuance review by Sustainable Fitch and an impact assessment carried out with Drees & Sommer.