Insurance and reinsurance provider Munich Re announced today the launch of a €1 billion green bond offering. The subordinated green bond has a coupon of 1.00% and will mature in 2042.
The new issue marks the second green bond for Munich Re, following its inaugural €1.25 billion offering in September 2020. In its recent Green Bond Allocation and Impact Report, Munich Re revealed that it has already fully allocated the proceeds from the initial green bond, well ahead of its 36-month target. Investments included projects related to sustainable forestry and agricultural practices, green buildings, renewable energy development, water and wastewater management, and circular economy.
Munich Re will use the proceeds from the new offering to finance or refinance sustainable projects, including investments in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and waste management, the eco-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land. According to Munich Re, the use of funds will be in line with its Green Bond Framework.
Christoph Jurecka, Munich Re CFO, said:
“Climate protection is an integral part of our Ambition 2025 Group strategy. By issuing a green bond, we have once again leveraged the capital markets to fund green investments. We strengthen our capital base, which gives us the financial flexibility to take advantage of current growth opportunities. “