German reinsurance company Munich Re has placed a EUR-1-billion (USD 1.19bn) green subordinated bond in order to finance investment in sustainable projects, including renewable energy.
The green bond, the company’s second offering of such securities, bears a coupon of 1% and matures in 2042, Munich Re said last week.
Funds from the offering are earmarked for growth opportunities in line with Munich Re’s climate protection programme. More specifically, the proceeds will go to finance or refinance, in the form of equity and debt, sustainable projects such as renewable energy, energy efficiency, clean transportation and water management schemes.
“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,” said CFO Christoph Jurecka.
A year ago, Munich Re raised EUR 1.25 billion from its first green bond sale that was aimed at supporting investments in renewable energy and other green projects.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.