Munich Re issues another green bond
In a statement issued today, global reinsurance player, Munich Re said after successfully issuing a green bond in 2020, it has launched a green subordinated bond for the second time in its corporate history. It said the volume of the issue is €1bn, with a coupon of 1.00 % and will mature in 2042.
By launching the bond Munich Re is reinforcing its capital base with a focus on growth opportunities that are emerging in many reinsurance markets.
“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. We strengthen our capital base, which gives us the financial flexibility to take advantage of current growth opportunities, ” said Christoph Jurecka, Munich Re Chief Financial Officer.
As part of Ambition 2025, Munich Re said it had adopted a broad climate protection programme featuring concrete climate protection targets for its investments, insurance business and operations. This bond highlights the multinational reinsurer's commitment to using the capital markets to help achieve a climate-friendly transformation of the economy.
Munich Re will use the raised capital 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 waste water management, the eco-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land.