Munich Re issues green bond

Reinsurer Munich Re has issued a subordinated green bond, with the volume issued amounting to EUR1.25 billion, with a view to helping 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 living natural resources and land. Munich Re’s Green Bond Framework is aligned with the 2018 Green Bond Principles set by the International Capital Market Association (ICMA).

Munich Re is strengthening its capital base with an eye towards growth opportunities that are emerging in many reinsurance markets. In addition, subordinated bonds are an important capital management tool that, among other things, give Munich Re the option of calling and redeeming outstanding subordinated bonds in 2021 and 2022.

The bond has a coupon of 1.25 percent and will mature in 2041.