Financing Green Projects Financing Green Projects


Commerzbank has recently assisted a number of green and social bonds as lead manager. Issuers are supported in the preparation, structuring and placement of the appropriate transactions in the international capital market. Green bonds are bonds, of which the proceeds explicitly serve sustainable projects. For example, these include sustainable projects in the field of renewable energies, sustainable waste management, energy efficiency and clean mobility solutions. The issuance volume in this area is steadily increasing and mounted up to more than EUR 121 billion worldwide in 2017 alone.

The term “Green Bond” is not protected, which in the past has led to very different projects and instruments being named and marketed as “green”. In order to implement standards, increase transparency and thereby improve the integrity of the green bonds market, the green bond principles were formulated in 2014. As a voluntary standard, the principles serve as guidelines for the issuance process of green bonds. Currently (status March 2016) 200 issuers, investors and banks support the green bond principles. Commerzbank is member of the green bond principles since mid-2014 and is actively engaged in the further development of this market segment.

Commerzbank supports its customers in preparing for and issuing bonds in areas of renewable energy and energy efficiency. In 2018, Commerzbank assisted in the issuing of green bonds worth 11.4 billion euros (2017: 5.8 billion euros).

Commerzbank issues inaugural green bond
On 16 October 2018 Commerzbank issued its inaugural green bond in the capital market, which attracted keen investor interest. The issue raised €500 million, with a term of 5 years. The final order book had a volume of €1.1bn. Commerzbank obtained its second party opinion from the renowned sustainability ratings agency Sustainalytics, which confirms that the bond complies with the latest Green Bond Principles. The Bank will use the proceeds to refinance renewable energy projects for onshore and offshore wind projects and solar projects in Germany, other European countries, and North and South America.