Obvion and DKB gives Green financing a boost
World First for Obvion with 100% Green RMBS
Dutch based Obvion has successfully finalised issuance of the world’s first 100% green RMBS (Residential Mortgage Backed Security). The EUR 500M deal is certified under the Climate Bonds Standard.
Proceeds will be used to refinance mortgages for energy efficient houses in Holland, based on Dutch energy performance labels for private homes.
Who’s Saying What?
Rachelle Rijk, Head of Funding & Balance Sheet Management:
“Diversification of the investor base was one objective of this inaugural transaction, but certainly not the only one. This transaction is also about the world we live in. Our ambition was to bring a Green transaction and give investors the opportunity to invest in a Green RMBS.”
Max Bronzwaer, Executive Director and Treasurer:
“This is the first time that RMBS investors are offered the possibility to buy green residential mortgage backed bonds for their impact investing portfolio. The order book was over EUR 1.2bn, so it was no problem to fully allocate this green RMBS to green investors. They appreciate green asset selection and the unique character of this transaction.”
The Obvion roadshow was still underway when we noted the issuance in our late May Blog.
Congratulations are now due after a successful close.
DKB Issues Germany’s First Climate Certified Green Bond
DKB, one of Germany’s largest banks, has been successful with a EUR 500m Climate Certified Green Bond. Proceeds will be used to refinance loans for the construction and operation of onshore wind and solar plants.
DKB has identified 181 assets – 66 wind and 115 solar projects – that may be financed by the proceeds.
Who’s Saying What?
Joop Hessels, Head of Green Bonds at ABN Amro:
“The bond is exclusively for renewable energy, but DKB still got a second-party opinion, assurance and certification, as well as committing to impact reporting,” he said. “This approach was very much appreciated by investors in the market.”
Stefan Unterlandstättner, CEO at DKB:
“The green bond pool consists exclusively of financing for solar and wind power projects onshore in Germany. It will be the first entirely green bond issued by a German commercial bank.”
“Launching this bond is the logical next step in our business model. Our portfolio includes the financing of renewable energy projects to the tune of more than EUR 9bn. Nobody else in Germany can say that.”
Not to be confused with the Nordex Green Schuldschein of late March (another first from Germany), this DKB issuance with its best practice certification and disclosure, is worth noting.
Stay tuned for more from DKB and check out their Green Bond information page. Very nice!
Strasser/MEP Werke Signal Future Offering
Newly minted Climate Bonds Partner, German based Strasser Capital & subsidiary MEP Werke have foreshadowed they are currently structuring a long-term note issuance programme; “secured on a granular portfolio of MEP solar lease receivables.”
Additional details are still sketchy at this stage, however Strasser have confirmed they will meet Climate Bonds Certification Standards in future issuances.
Strasser Capital specializes in clean energy investments, financing and operations throughout the EU, with a focus on solar energy.
Who’s Saying What?
Strasser Capital Founder Konstantin Strasser:
‘The first of its kind in Europe.’
We’re intrigued and look forward to further details.
The Last Word
Obvion and DKB have put leading deals before the market, and deservedly, have received a positive investor response.
Strasser Capital have signalled an intention but are yet to show their hand. The significance of the respective Obvion and DKB issuance should be noted, the Strasser deal anticipated.
Together they signal an EU market growing in depth and diversification.
We’ll cover these and some other deals in our full Market Blog due out late next week.
Disclaimer: The information contained in this communication does not constitute investment advice and the Climate Bonds Initiative is not an investment adviser. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not advising on the merits or otherwise of any investment. A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind for investments any individual or organisation makes, nor for investments made by third parties on behalf of an individual or organisation