Munich Re issues a green bond. The subordinated bond has a volume of 1.25 billion euros. The annual interest rate is 1.25 percent. The bond runs until 2041.
The company intends to use the fresh money to finance projects that are defined in the “Green Bond Framework”. This includes projects in the fields of renewable energies, energy efficiency, sustainable transport, green buildings, sustainable water (management), eco-efficient economy and circular economy. The sustainable management of resources and land should also be promoted. Munich Re has currently invested around 1.6 billion euros in renewable energies. In the coming years this is to be expanded to 2.8 billion euros.
CFO Christoph Jurecka: “With the green bond, we are taking on a pioneering role in sustainable finance and serving the growing demand for climate-friendly investment opportunities. At the same time, Munich Re is strengthening its capital base in a phase in which hardening reinsurance markets offer numerous opportunities for profitable growth. ”
This is Munich Re’s first green bond.