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Launch of €1 billion Green Bond for the Federal State of Hesse

Julyesg

Our team in Germany played a major part in enabling the move to a decarbonised economy, acting as Structuring Advisor and Joint Bookrunner for the launch of Europe’s largest-ever Subsovereign Green Bond, for the Federal State of Hesse.

Following the first successful issue which took place in 2021, this latest Green Bond raised €1 billion and showcased a large breadth of 30 different projects consistent with the State’s Sustainability Strategy. This result is a testament to the strong investor perception of the German State of Hesse within its European investor base.

We were honoured to once again collaborate successfully with the State, drawing on our solid investor network and deep knowledge of ESG transactions. Hesse remains a pioneer in green financing. Back in 2021, Hesse was the first state to issue a green bond in the so-called benchmark size over 500 million euros and the second transaction was the largest green bond issued by a federal state.

The Green Bond covers several ecologically sustainable fields of action. These include, for example environmentally friendly public transport, measures for the forest, organic farming and nature conservation as well as CO2-neutral state administration.

By issuing Green Bonds, Hesse aims to fulfil the increasing need of investors to invest financial resources in an ecologically sustainable manner. The result is a win-win-win situation: the State benefits from particularly favourable conditions for the bond and a broader investor base, while investors can acquire sought-after green bonds. The main winners, however, are the climate and the environment.

Thomas Witzel

The State of Hesse ticks all the boxes for green investors. Hesse is the first German State to issue a €1 billion green bond. The issuer prepared the ground for this very successful transaction with intense virtual investor work which was extraordinary well received. About 75% of the bonds were allocated to ESG investors, which speaks for the quality of the projects and the issuer."

Thomas Witzel

Director Public Sector Entities UniCredit Bank GmbH (“UniCredit HypoVereinsbank”)

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