Aareal Bank with debut Green Pfandbrief

With our first Green Pfandbrief issued in accordance with the vdp standard, we achieved a very successful market entry. In a constructive market environment, we were able to build a high-quality and broadly diversified order book with strong demand from the DACH region and Scandinavia. The strong demand for our Green Pfandbrief enabled us to tighten the 6-year transaction by 6 basis points compared to the original spread guidance and price it at +33 basis points over mid-swap. At the same time, the green format appealed to new ESG-oriented investors and significantly expanded our investor base. Every second order was placed with ESG-oriented investors, of which around 30% had a clear focus on sustainable investments.

The issuance is a key component of our sustainability strategy. ESG is firmly anchored in our core business—with a clear focus on green loans and their sustainable refinancing. The 44% share of green property financing in our loan portfolio ensures a high-quality and liquid green cover pool. Our green asset pool is continuously managed through an internal process. Following successful green unsecured issues, we can now also offer Pfandbrief investors a sustainable format. The Green Pfandbrief is thus another important step toward diversifying and expanding our investor base.

With our debut Green Pfandbrief transaction, we are also sending a clear strategic signal: The Green Pfandbrief will be an integral part of our capital market funding strategy. We plan to issue an annual Green Pfandbrief benchmark in the future; potential green transactions in the senior segment may also be added as a supplement. In this way, we aim to provide ESG-oriented investors with a reliable and suitable sustainable investment offering across various product segments.