Kreissparkasse Köln with green debut in sub-benchmark format

We are naturally very pleased with the outcome of the transaction. In particular, the high demand from investors contributed to what we consider to be a great success. We were already able to ascertain a high level of interest in our transaction during the intensive investor discussions in the run-up to the issue. Thanks to the well-chosen timing of the issue, we were able to attract the necessary attention and generate a high level of demand.
With a final order book of more than 90 investors and a volume of over € 2.4 billion, the transaction was almost 10 times oversubscribed. We are particularly pleased that we were able to place around 50 % of the issue of this Green Pfandbrief with decidedly sustainable and green investors.

The topic of sustainability plays a major role in society and within the Kreissparkasse Köln. For example, we have had a sustainability rating for years, have taken measures to reduce our carbon footprint and use sustainability filters both in our customer advisory services and in our own investments. However, until now we have lacked our own sustainable, capital market-capable refinancing instrument. Our first Green Pfandbrief now closes this gap.
Kreissparkasse Köln issues sustainable bonds to refinance suitable housing loans in accordance with the vdp’s new minimum standards for issuing Green Pfandbriefe, based on the ICMA Green Bond Principles. The quality of our green cover pool, which mainly consists of single-family and multi-family homes, is reflected in a high level of granularity, and energy performance certificates have been systematically recorded since 2019.
In the future, we plan to be present with Green Pfandbriefe, but also with traditional Pfandbriefe in sub-benchmark format.

Kreissparkasse Köln has been issuing Pfandbriefe for over 20 years. Alongside customer deposists, the Pfandbrief ist our most important refinancing instrument and in the past we have already carried out a number of issues in sub-benchmark format, most recently in 2016. Since then, we have mainly served our customers with private placements.
The great success of the current transaction has shown that we were also able to broaden our existing investor base with this Green Pfandbrief by adressing new investors who are specifically interested in sustainable investments. Almost 28% of the issue was placed outside Germany, and a good 16% of the volume went to Northern Europe alone, for example.