Munich Re Issues its First U.S. Market Green Bond
Insurance and reinsurance provider Munich Re announced today the completion of a $1.25 billion green bond offering. The issuance marks the third green bond for the company and its first for the U.S. market.
Munich Re issued its inaugural green bond in a €1.25 billion offering in September 2020 and has fully allocated the proceeds through investments including projects related to sustainable forestry and agricultural practices, green buildings, renewable energy development, water and wastewater management, and circular economy. The company launched its second green bond in a €1 billion offering in September 2021.
Munich Re stated that it will use the proceeds from its third offering to finance or refinance sustainable projects in accordance with its Green Bond Framework, including investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and wastewater management, the eco-efficient and/or circular economy and the environmentally sustainable management of natural resources and land.
Christoph Jurecka, Munich Re CFO, said:
“By successfully placing its first subordinated bond on the US market, Munich Re has impressively demonstrated its attractiveness for new groups of investors. In structuring this bond as a green bond, we are the first European insurer to break such new ground in this market segment. At the same time, the green bond supports the climate targets of our Ambition 2025 strategy.”