A prominent international legal practice has provided expert guidance to a syndicate of financial institutions, including UniCredit Bank GmbH and 16 additional banks, on the recent issuance by Berlin Hyp AG. This issuance comprised two separate tranches of fixed-rate Mortgage Pfandbriefe, totaling €1.5 billion in principal value. The funds raised will be utilized for various corporate objectives. The first tranche, valued at €1 billion, comes with a four-year maturity period and an interest rate of 2.625%. These securities have been officially listed on the regulated market segment of the Berlin Stock Exchange.
The second tranche, designated as green Mortgage Pfandbriefe, carries a principal amount of €500 million. It is characterized by a longer tenure of seven years and nine months, along with a fixed coupon rate of 2.750%. Notably, this issuance aligns with environmental sustainability goals, as the proceeds will be directed towards financing assets that meet specific eligibility criteria outlined in Berlin Hyp’s Green Bond Framework. In addition to the Berlin Stock Exchange, these green bonds are also traded on the regulated market of the Luxembourg Stock Exchange. The legal advisory team from the Frankfurt office played a pivotal role in ensuring the successful completion of this transaction.
This issuance underscores the commitment of financial institutions to support sustainable development through innovative financial instruments. By channeling funds into environmentally friendly projects, these organizations contribute positively to global efforts aimed at combating climate change and promoting sustainable growth. The collaboration between legal experts and financial institutions exemplifies how strategic partnerships can drive meaningful progress in both economic and environmental spheres.
