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Green interest in terms of sustainability

Advertising. The trend towards sustainable investments is noticeably accelerating, because more and more investors want to use their capital in a climate-friendly and socially responsible manner. Stock selections that take sustainability aspects into account can already refer to years of history. But also in the area of ​​bonds, investors have a rapidly growing selection at their disposal since the European Development Bank (EIB) issued the world’s first “Green Bond” for institutional investors in 2017.

Green bonds are generally understood to be bonds that, regardless of their specific structure, are used to finance climate-protecting projects, for example. Compared to the equities sector, where the selected companies are very diverse, the green bond investor supports certain projects directly. Such financing makes a concrete contribution to climate protection, for example, and has a corresponding effect. Green bonds are therefore part of what is known as “impact investing”.

Green bonds can be issued by companies, development banks, commercial banks and even governments. Germany, for example, recently issued the first green bond to large investors, which, despite the negative return, met with great interest and, among other things, is intended to finance traffic turnaround projects. DekaBank has also been selling sustainable product solutions in the area of ​​structured products and certificates since 2019. These include the new green bonds, which are now being offered to private customers for the first time. These green bonds enable the financing of sustainable projects with a measurable benefit for the environment.

To this end, DekaBank has developed the “Green Bond Framework”, which is based on the Green Bond Principles (GBP). For example, the possible uses of the proceeds from the issue are defined in terms of sustainability. These extend to the financing of projects in the fields of renewable energies (solar energy, wind energy onshore / offshore) as well as green commercial real estate that meets the relevant country-specific requirements. DekaBank’s “Green Bond Committee” monitors the process of selecting and selecting suitable loans. In addition, annual reports are provided on the use of the proceeds from the issue and the environmental impact of the allocated credits. An external review by the rating agency Sustainalytics is also one of the measures of the Green Bond Framework. The new green bonds from DekaBank are therefore ideal for investors who want to ensure that their income is generated from sustainable investments.

Two fixed-rate bonds with a term of five and six years

In the drawing are currently the DekaBank 0.09% Fixed Rate Bond Green Bond 10/2025 (SNP) (WKN DK0X61) with a five-year term and the higher-interest, six-year DekaBank 0.20% Fixed Rate Bond Green Bond 10/2026 (SNP) (WKN DK0X62). Both papers make annual interest payments and at the end of the term the investor receives back the nominal amount of EUR 1,000.00 per bond in full.

Two stepped interest rate bonds with a term of seven and eight years

The DekaBank step rate bond Green Bond 10/2027 (SNP) (WKN DK0X63) has a seven-year term at interest rates of 0.20 to 0.50 percent. In addition, the eight-year-old DekaBank step rate bond Green Bond 10/2028 (SNP) (WKN DK0X64) Interest rates of 0.20 to 0.60 percent in prospect. The incremental interest rate bonds also repay the nominal amount (EUR 1,000.00) in full when due.

However, like all bonds, all four of the securities mentioned are subject to the issuer risk. Accordingly, in the event of DekaBank’s insolvency, there would be a risk of losses up to the total loss of the nominal amount invested.

Subscriptions for all of the green bonds mentioned will run from October 5, 2020 to October 23, 2020, subject to an extension or shortening.

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Disclaimer: The information contained herein does not constitute a recommendation to buy or sell the financial instrument and cannot replace individual advice. This advertising information does not contain all relevant information about this financial instrument. Before making an investment decision in certificates, potential investors are advised to read the securities prospectus in order to fully understand the potential risks and opportunities of the investment decision. The approval of the prospectus by the competent authority is not to be understood as an endorsement of the securities offered. Before making an investment decision in certificates, potential investors are advised to read the securities prospectus in order to fully understand the potential risks and opportunities of the investment decision. The approval of the prospectus by the competent authority is not to be understood as an endorsement of the securities offered. The securities prospectus for the DekaBank 0.09% Fixed Rate Bond Green Bond 10/2025 (SNP) and any supplements can be found at https://www.deka.de/deka-gruppe/wertpapierprospekte under the tab “EPIHS-I-20”, the final terms at https://mmscache.deka.de/DE000DK0X618_FT.pdf downloaded. The securities prospectus for the DekaBank 0.20% Fixed Rate Bond Green Bond 10/2026 (SNP) and any supplements can be found at https://www.deka.de/deka-gruppe/wertpapierprospekte under the tab “EPIHS-I-20”, the final terms at https://mmscache.deka.de/DE000DK0X626_FT.pdf downloaded. The securities prospectus for the DekaBank step rate bond Green Bond 10/2027 (SNP) and any supplements can be found at https://www.deka.de/deka-gruppe/wertpapierprospekte under the tab “EPIHS-I-20”, the final terms at https://mmscache.deka.de/DE000DK0X634_FT.pdf downloaded. The securities prospectus for the DekaBank step rate bond Green Bond 10/2028 (SNP) and any supplements can be found at https://www.deka.de/deka-gruppe/wertpapierprospekte under the tab “EPIHS-I-20”, the final terms at https://mmscache.deka.de/DE000DK0X642_FT.pdf downloaded. All securities information is also available from your Sparkasse or DekaBank Deutsche Girozentrale (www.deka.de), 60625 Frankfurt available free of charge.

If courses / prices are mentioned, these are non-binding and do not serve as an indication of tradable courses / prices. The values ​​given here serve to explain the payout profile of this financial instrument. The values ​​are not a reliable indicator of future performance.

Sales restrictions: Reference is made to special sales restrictions and sales regulations in the various legal systems. In particular, the financial instruments described herein may not be offered for sale or purchase within the United States of America or to or for the benefit of U.S. persons.

Scope ZMR AAA

Rating from September 25, 2019, more information at www.deka.de/privatkunden/auslösungen/scope-zertifikate-management-rating

As Head of the Private Banking, Product Management and Product Sales unit of the Deka Group, Hussam Masri is responsible for product development and product management of mutual securities funds, asset management and pension products, certificates and private banking.


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