German bank Commerzbank AG has issued its second green bond with an issuance volume of €500 million ($591 million). The bank will use the proceeds to refinance renewable-energy projects that are expected to reduce carbon emissions of around 850,000 tons per year.
In recent years, Commerzbank has significantly expanded its financing for renewable energy projects and is also responding to the continuing increase in demand for sustainable asset classes, said Inga Johal, divisional board member group treasury at Commerzbank.
The non-preferred senior bond had a volume of more than €4 billion ($4.7 billion) and the final order book at re-offer was eight times subscribed. The bond has a term of five-and-a-half years with a call date in March 2025.
“For us as an issuer, it is particularly important to widen the bank’s investor base by issuing green bonds,” added Johal. “The great success of our issuance shows that green bonds are no longer a niche topic.”