Munich Banks’ Social Bond Offering For The City Of Munich

Simmons & Simmons has advised banks operating in Munich on the issuance of a new Social Bond for the City of Munich.

The bond has a volume of € 120m, a term lasting until November 2023, and an interest rate of 0.25%. The transaction was led by Bayerische Landesbank (technical lead) and UniCredit Bank AG (structuring of the sustainability component), and was accompanied by Stadtsparkasse München as co-lead.

The city bond is traded on the Munich Stock Exchange and is intended for both institutional and private investors. Unique to this bond is that it follows the so-called “Social Bond Principles” and the proceeds of the issue will therefore be used by the City of Munich primarily to create affordable housing.

The city will use the funds from the issue of the “Munich city bond”, which are part of the universality of revenue, primarily to exercise its rights of first refusal, thereby protecting tenants in rented accommodation in Munich.

The Simmons team consisted of Dr Felix Biedermann (Picture – Partner, Frankfurt) and Dr Gabriele Röhl (Counsel, Frankfurt).

Involved fees earner: Felix Biedermann – Simmons & Simmons; Gabriele Röhl – Simmons & Simmons;

Law Firms: Simmons & Simmons;

Clients: Bayerische Landesbank; Stadtsparkasse München; UniCredit Bank AG;

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