Vonovia SE Launches €850 Million Social Bond with a 10-Year Maturity

Vonovia SE, on April 3, 2024, successfully issued an unsecured social bond valued at €850 million, with a maturity period of ten years. This move proves the company's adeptness at merging social responsibility with strong access to the capital market, according to CFO Philip Grosse.

Philip Grosse highlighted the bond was issued in compliance with the Sustainable Finance Framework established in February 2022. Remarkably, the bond, offering a coupon rate of 4.25%, was overwhelmingly subscribed, by 4.8 times, underlining the market's confidence in Vonovia. Moreover, the bond issuance aimed to fund several social projects, including affordable housing initiatives and low-barrier apartments catering to the elderly.

Concurrently, Vonovia received its first rating from Fitch, a BBB+ with a stable outlook, endorsing the company's solvency and the real estate market’s stability in Germany. Grosse viewed this rating as a validation of Vonovia's strategic focus on reducing debt ratios and the resilience of its business model.