Munich Re issues another green bond, to support its climate strategy

2 September 2021 — Daniela GHETU
After successfully issuing a green bond in 2020, Munich Re has launched a green subordinated bond for the second time in its corporate history, the German Group announced today. The volume of the issue is EUR 1billion. The bond has a coupon of 1.00 % and will mature in 2042.

"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," Christoph Jurecka, CFO of the Group, commented.

By launching the bond Munich Re is reinforcing its capital base with a focus on growth opportunities that are emerging in many reinsurance markets.

As part of Ambition 2025, Munich Re has adopted a broad climate protection program featuring concrete climate protection targets for its investments, insurance business and operations. This bond highlights Munich Re'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 wastewater management, the eco-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land.

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