Certification by Climate Bond Initiative for LBBW's green bond
As the first European commercial bank for a green bond transaction based on commercial real estate, LBBW has obtained the certification by the Climate Bond Initiative (CBI) for its Green Bond issued in December 2017. LBBW received this high-ranking award for its innovative approach to determining energy-efficient buildings for the German real estate market. “The CBI certification shows that LBBW has met high international sustainability standards with its green bond program. The certification is proof of the sustainable quality of our green bonds and underlines the leading role that we have in this market segment,” said Dr Christen Ricken, member of the LBBW Board of Managing Directors responsible for capital market activities.
The CBI is a non-profit organization that aims to increase awareness of the importance of green bonds on the international capital markets. It certifies green bonds that have been developed on the basis of the criteria of the Climate Bonds Standards. For example, to classify commercial real estate that is refinanced through a green bond as green assets, it has to be in the top 15% of the local real estate market from an energetic point of view.
For its first own green bond, LBBW worked with real estate specialists Drees & Sommer to develop a new methodology for the selection of green assets. Buildings from the existing portfolio which are in the top 15% most energy-efficient in Germany and therefore comply with CBI guidelines can be identified through the specified criteria.
The new rating approach, which can also be used by other market participants, and reporting which took place directly after the issuing of the green bond enable LBBW to assess the estimated CO2 reduction of the bonds shortly after issue.
Therefore, LBBW is making a further significant contribution to the development of the green bond market and is also contributing to the decarbonization of the commercial real estate sector in Germany.
About LBBW's green bond
In December 2017, LBBW issued its own green bond for the very first time. The issue had a volume of EUR 750 million and was therefore the biggest green bond issue so far from a European commercial bank. With the issue proceeds, the bank is refinancing energy-efficient commercial real estate, meeting national regulations and internationally-recognized standards and also renewable energy projects in the future. The framework developed by LBBW is also new, which sets the conditions for this and also for all of the bank's own future green bond issues. LBBW also has a leading role in supporting green bond issues from Germany.