LEG Immobilien : successfully has issued sustainability bond with nominal value of EUR 600 million

23.06.2021

LEG Immobilien SE successfully has issued sustainability bond with nominal value of EUR 600 million

• Unsecured, fixed-interest bond with nominal value of EUR 600 million, coupon of 0.750 % and term of 10 years
• Corporate bond addresses high interest in sustainable financing options in the market and meets with strong demand from investors
• Premiere: First sustainability bond by a listed German housing company intended to fund social and environmental projects

LEG Immobilien SE has issued a sustainability bond with a volume of EUR 600 million. The capital will be used to (re)finance social and environmental investments and projects such as social housing, the capitalisation of the company's foundations and energy-efficient buildings. The bond issued reflects the company's ESG strategy. In line with LEG's commitment to be a fair landlord, a slight overweighting for the financing of social projects is planned for the allocation.

The bond has a tenor of 10 years and a coupon of 0.750 % p.a. LEG's sustainable business model as well as the bond met with a high level of interest from investors and strong demand, hence leading to an oversubscription of 2.7x at its peak. The bond was subscribed mostly by investors from France, Germany, Benelux, the UK and Scandinavia.

'The placement of our first sustainability bond reflects LEG's sustainable strategy, results in further optimisation of our financing profile and emphasises LEG's excellent access to all major financing markets.', explains Susanne Schröter-Crossan, CFO of LEG Immobilien SE.

The transaction was accompanied by Deutsche Bank as Global Coordinator & ESG Structuring Advisor, Goldman Sachs Bank Europe SE and HSBC Continental Europe as active bookrunners. Société Générale and UniCredit were passive bookrunners.

LEG has committed itself to a framework for sustainable financing. The company's framework focuses on sustainable projects related to affordable housing/social housing, energy efficient homes, certified environmentally friendly buildings, high standards for energetic refurbishment, community engagement, the use of renewable energy and clean transportation. ESG rating agency Sustainalytics reviewed the framework.

About LEG

With around 145,000 rental properties and approximately 400,000 residents, LEG is one of Germany's leading listed housing companies. The company has seven branch offices in its heartland in North Rhine-Westphalia and is represented by local personal contacts at selected locations in other western German states.

LEG generated income of around EUR 861 million from its core rental and lease business in the 2020 financial year. As part of the new construction campaign it launched in 2018, LEG wishes to make a social contribution towards creating both privately financed and publicly subsidised housing and to build or acquire at least 500 new apartments per year from 2023 onwards.

Investor Relations contact:

Frank Kopfinger

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Press contact:

Sabine Jeschke

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Disclaimer

This publication constitutes neither a solicitation to buy nor an offer to sell securities.
To the extent that we express forecasts or expectations or make forward-looking statements in this document, these statements can entail known and unknown risks and uncertainties. These statements reflect the intentions, opinions or current expectations and assumptions of LEG Immobilien SE. The forward-looking statements are based on current planning, estimates and forecasts, which LEG Immobilien SE has made to the best of its knowledge, but that are not a statement on their future accuracy. Actual results and developments can therefore differ materially from the expectations and assumptions expressed.