Deutsche Kreditbank Aktiengesellschaft’s First Blue Social Bond Offer

Hogan Lovells has advised Bbanks on the placement of the world’s first Blue Social Bond of Deutsche Kreditbank Aktiengesellschaft.

The banks involved were Bayerische Landesbank as arranger, ABN AMRO Bank N.V., DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, NATIXIS and UniCredit Bank AG.

The Blue Social Bond, which was oversubscribed four times, was issued by DKB on the basis of its social bond framework. It will serve the refinancing of the municipal water supply and sanitation business in Germany. The Blue Social Bond has a nominal value of EUR 500 million, a term of ten years and an interest coupon of 0.01 per cent. The low interest rate is due to the structure as a Public Sector Pfandbrief, which is covered by a “Blue” loan pool of EUR 1.3 billion from the Social Bond Program of the Deutsche Kreditbank AG.

62 per cent. of the Bond with the identification number DE000SCB0021 was subscribed in Germany and 38 per cent. by foreign investors.

Hogan Lovells team advised with Dr. Jochen Seitz (Picture), Dr. Stefan Schrewe, Julius Henneberg (Associates), Nina Fischer (Business Lawyer) (all International Debt Capital Markets, Frankfurt).

Involved fees earner: Julius Henneberg – Hogan Lovells; Stefan Schrewe – Hogan Lovells; Jochen Seitz – Hogan Lovells;

Law Firms: Hogan Lovells;

Clients: ABN AMRO Bank N.V; Bayerische Landesbank; DZ BANK AG; Natixis; UniCredit Bank AG;