Real estate firm DIC Asset issues EUR 400m maiden green bond

German commercial real estate specialist DIC Asset AG (ETR:DIC) on Wednesday issued its first green bond worth EUR 400 million (USD 472.9m) to finance the attribution of existing or the acquisition of new green buildings.

The bond drew solid demand among European institutional investors which led to the upsizing of the offering by EUR 100 million, DIC Asset said on Wednesday.

The five-year notes are due in September 2026 and bear a coupon of 2.25%.

"Today's bond marks the next milestone we are clearing as part of our success story in green finance. The Green Bond helps us to further diversify our financial structure and make it even more flexible," said chief capital markets officer Patrick Weiden.

The issue is in line with DIC Asset's Green Bond Framework which sets the criteria for the financing of green projects, including existing or new energy-efficient buildings or buildings with environmental certification. The bond is the next step in the sustainability strategy of the Frankfurt-based company which seeks to raise the share of green buildings to about 20% of the market value of its portfolio by the end of 2023 from currently 11%. The portfolio now comprises 234 properties with a total value of EUR 11.3 billion.

(EUR 1 = USD 1.182)

Choose your newsletter by Renewables Now. Join for free!