DKB is a regular issuer of benchmark bonds in euros. Since 2016, these are sustainable too – either green or social. We use the proceeds of our green bonds to refinance DKB loans in renewable energies. These companies provide the necessary infrastructure to enable the Energiewende. Currently, the volume of the loan portfolio in this area is around EUR 11 billion (Stand: 31.12.2020), making it one of the largest of such in Germany.
In September 2018, we set up our social bond programme that enables us to issue social bonds, whose use of proceeds we use to refinance loans made to institutions in the areas of social housing, public care, health and care, education and research as well as inclusion. Our Social Bond Framework describes the conditions of the programme.
DKB has an excellent sustainability rating from the ESG research & rating agency ISS-ESG (formerly ISS-oekom). The grade "B-" is best-in-class amongst national and international commercial, state and regional banks that are in the same peer group as DKB.
For the second time in a row, DKB received an award for a particularly successful social bond. The renowned trade magazine for sustainable finance - "Environmental Finance" - together with an independent jury of 30 members from the world's most important sustainable investors, awarded the Blue Social Bond (DE000SCB002) from DKB with the Innovation Award. The issue thus underlines DKB's Blue Sustainability concept, which goes beyond environmental issues and seeks to create social value.
In June 2016, DKB issued its first unsecured Green Bond. The issue with a volume of EUR 500 million and a maturity of 5 years was very well received by the market with more than 200 institutional investor subscriptions. The sustainable nature and quality of the assets underlying the green bond prompted the sustainability rating agency ISS ESG to give the bond the best rating of "a" (excellent) among close to 250 green bonds rated in the Sustainability Bond Rating.
In September 2017, we updated our Green Bond Programme, underlining our claim to be a regular issuer of green bonds. In 2020, DKB combined the two existing Green Bond Programmes (current total volume: EUR 2.3 billion) and achieved another milestone:
We were among the few banks to create a green bond framework that complied with the current draft of the EU Green Bond Standard and thus met the requirements of the EU taxonomy. Later in 2021, we were then the first private bank in Europe to issue a green bond that complied with this current draft of the Green Bond Standards and the requirements of the EU taxonomy.
Here you can find relevant documents for an overview of our Green Bond Programme:
In September 2018, DKB published a Social Bond Programme as a basis for social bonds issuances. This makes DKB the first bank in Germany to have launched both a green and social bond programme. The proceeds of the social bonds are used to refinance loans that create a social value. Customers are from the areas of social housing, public care, health & care, education & research and inclusion.
To date, DKB has issued four social bonds - including a social bond for private customers and wastewater companies. The current total volume of the Social Bond Programme is EUR 3.4 billion.
Here you can find relevant documents for an overview of our Social Bond Programme:
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 an additional refinancing tool underpinned by one of the largest renewable energy portfolios in Germany and over 20 years of experience.
DKB's green bonds are designed for institutional investors. They are issued in denominations of EUR 100,000.
The proceeds of the bonds are only used to refinance loans in the German solar and wind power sectors.
Yes. Impact & Allocation Reporting takes place at least once (after issuance) or when there are major changes in the underlying green or social bond pools.