Munich Re targets US market with third green bond

Munich Re has successfully placed its first green subordinated bond in a private placement to qualified institutional buyers in the US market.

This is the third green bond issued by the carrier, following placements in 2020 and 2021.

By issuing this bond in the globally important US market segment, Munich Re said has succeeded in expanding and diversifying its group of investors.

The volume of the issue is US$1.25 billion and the bond has a coupon of 5.875%, maturing in 2042.

Munich Re said the green bond underlines its commitment to the Paris Climate Agreement and supports its strategic goal of significantly increasing investments in energy efficiency and renewable energies to combat climate change.

It added that it will use the capital raised to finance or refinance sustainable projects in accordance with the company’s Green Bond Framework. 

Projects include 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.

“By successfully placing its first subordinated bond on the US market, Munich Re has impressively demonstrated its attractiveness for new groups of investors,” commented Christoph Jurecka, Munich Re’s CFO.

“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,” he added.

The bond was issued to qualified institutional buyers in the U.S. market under Rule 144A and outside the US in accordance with Regulation S of the US Securities Act of 1933.

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