Since 2016, DKB has issued green bonds. The basis for this is DKB's loan portfolio in renewable energies - with a volume of around EUR 10 billion, it is one of the largest in Germany. DKB's green bonds are currently the best rated green bonds worldwide (Sustainability Bond Rating by ISS-ESG).
In September 2018, DKB launched another sustainable refinancing programme for capital market products: a social bond programme. Therefore we can issue so-called social bonds. These are based on loans in the areas of social housing, public supply, health and care, education and research and inclusion. The detailed conditions of the programme are described in the Social Bond Framework.
DKB has been awarded an outstanding sustainability rating by the ESG Research & Rating Agency ISS-ESG. The grade "B-" currently represents the highest among all national and international commercial, state and regional banks within the peer group of DKB.
For the second time in a row, DKB is awarded for a particularly successful social bond. The renowned specialist magazine for sustainable finance - "Environmental Finance" - together with an independent 30-member jury of the world's most important sustainable investors has awarded DKB's Blue Social Bond (DE000SCB002) with the Innovation Award. The issue thus underlines DKB's Blue Sustainability concept, which goes beyond purely ecological issues and focuses on people and thus also on social goals.
DKB issued its first unsecured green bond in June 2016. The bond, with a volume of EUR 500 million and a term of 5 years, was very well received by the market and signed by over 200 investing institutions.
The high sustainabile quality of the green bond prompted sustainability rating agency oekom research (ISS ESG) to award the bond an “A” (excellent) rating – the highest rating it has ever awarded, out of approximately 250 green bonds rated in the Sustainability Bond Rating.
In 2017, DKB launched its second green bond programme, underlining its aspiration to be a regular issuer of green bonds.
In 2020, DKB has combined the two existing Green Bond Programmes (total volume: EUR 2.4 billion). Furthermore, DKB reached another milestone: it is one of the few banks to have created a Green Bond Framework that complies with the current draft of the EU Green Bond Standard and thus also meets the strict requirements of the EU taxonomy.
You can find all published documents in connection with our Green Bond Programme here:
In September 2018, DKB published its first Social Bond Programme. Based on this, DKB is able to issue so-called social bonds, which serve to refinance loans with social added value. The corresponding customer groups are social housing, public services, health & care, education & research and inclusion. This makes DKB the first bank in Germany to have launched both a Green and Social Bond programme.
So far, DKB has been very successful in placing three social bonds on the market, including a social bond for private customers. The 2019 transaction was the world's first Blue Social Covered Bond for the refinancing of municipal water and wastewater companies.
Details on the concept and the underlying social aspects can be found in the documents listed below:
To highlight the sustainable effects of our green and social bonds, we regularly publish a corresponding impact reporting. For the years 2016 and 2017, we have published a corresponding reporting for our Green Bond emissions. In the course of our first Social Bond issue in 2018, we decided to publish both aspects of our sustainable funding strategy in a joint document. In doing so, we are also taking into account our concept of blue sustainability, which implements social aspects as well as purely ecological ones.
Green bonds are interest-bearing securities whose issue proceeds are used to finance business models that promote sustainability such as energy-efficient buildings, public transport, hydropower, other forms of renewable energy and waste management. DKB's green bonds are only used to refinance solar and wind power projects.
Green bonds are a relatively new asset class. They differ from conventional bonds primarily in terms of the specific requirements governing the allocation of funds as well as applying special reporting rules.
DKB's main sources of refinancing are deposits from its customers, its Pfandbrief issues and its development loan business. Issuing green bonds gives DKB a further refinancing tool underpinned by one of the largest renewable energy portfolios in Germany and over 20 years of experience.
It is also a logical step in terms of sustainability as it allows the interests of green investors to be met while also delivering projects with a sound environmental or social purpose.
The funds contributed are only used to refinance loans in the German solar and wind power sector.
Yes. DKB will be reporting on the scope of the projects being refinanced, their environmental impact and other key indicators at least once a year and publishing its findings on its website.
DKB's green bonds are designed for institutional investors. They are issued in denominations of EUR 100,000.