Following its profitable placement of inexperienced bonds in 2020 and 2021, Munich Re has efficiently positioned its first inexperienced subordinated bond in a personal placement to certified institutional consumers within the U.S. market.
By issuing this bond within the globally necessary U.S. market section, Munich Re has succeeded in increasing and diversifying its group of buyers, the corporate mentioned.
The quantity of the problem is US$1.25 billion and the bond has a coupon of 5.875%, maturing in 2042.
Munich Re mentioned the inexperienced bond underlines its dedication to the Paris Local weather Settlement and helps its strategic objective of considerably growing investments in power effectivity and renewable energies to fight local weather change.
Munich Re will use the capital raised to finance or refinance sustainable initiatives in accordance with the corporate’s Inexperienced Bond Framework. Initiatives embrace investments of fairness and debt in renewable power, power effectivity, clear transportation, inexperienced buildings, sustainable water and wastewater administration, the eco-efficient and/or round economic system, and the environmentally sustainable administration of pure assets and land.
“By efficiently inserting its first subordinated bond on the U.S. market, Munich Re has impressively demonstrated its attractiveness for brand spanking new teams of buyers,” commented Christoph Jurecka, Munich Re’s CFO.
“In structuring this bond as a inexperienced bond, we’re the primary European insurer to interrupt such new floor on this market section. On the similar time, the inexperienced bond helps the local weather targets of our Ambition 2025 technique,” he added.
The bond was issued to certified institutional consumers within the U.S. market below Rule 144A and outdoors the U.S. in accordance with Regulation S of the U.S. Securities Act of 1933.
Supply: Munich Re
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