German promotional lender NRW.BANK on Wednesday priced a €1.5 billion, seven-year bond, its first European Green Bond, or EuGB, issued under the European Union's Green Bond Standard. The transaction marks the bank's debut use of the label created by Regulation 2023/2631.
The Regulation, adopted as part of the European Union's sustainable finance package, sets out a voluntary standard for issuers wishing to designate a bond as European Green.
PROCEEDS ANCHORED IN EU TAXONOMY
Under the EuGB standard, proceeds must be allocated to activities aligned with the EU Taxonomy for sustainable economic activities. NRW.BANK said the bond's underlying assets are fully compliant with the EU Taxonomy and contribute to both climate protection and the preservation and restoration of ecosystems and biodiversity, through seven taxonomy-compliant business activities.
NRW.BANK, the promotional bank of the German state of North Rhine-Westphalia, has issued green bonds since 2013 and social bonds since 2020. The EuGB is its 17th green bond and takes the total volume of NRW.BANK.Green Bonds to €11 billion; it was more than twice oversubscribed, and the lead managers were DekaBank, DZ BANK, NatWest and Nordea.
The bond is listed on the Luxembourg Stock Exchange under ISIN DE000NWB0B16, with a minimum denomination of €1,000.
TWO TYPES OF GREEN BOND
NRW.BANK said it will continue to issue green bonds that comply with the ICMA Green Bond Principles and are based on the EU Taxonomy alongside EuGB-compliant bonds. "We can now issue two different types of green bonds. This allows us to flexibly respond to investors' demand," said Gabriela Pantring, Chairwoman of the Managing Board.
"The European Green Bond Standard is regarded as the gold standard for green bonds. Our investors therefore benefit from the highest level of comparability and transparency when participating in projects with particular ecological benefits in and for North Rhine-Westphalia," Pantring said.
NRW.BANK publishes the results of its impact studies annually in its Green Bond Reporting.
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