Future Fitness and the Capital Market
Vonovia Social Bonds – Unique in the Real Estate Sector
Sustainable financing is an effective tool for achieving the EU’s environmental targets and the UN Sustainable Development Goals (SDGs). For this reason, Vonovia updated its first Green Bond Framework (first published in March 2021) in February 2022. The purpose of this framework is to drive up investment in assets with proven ecological and social benefits. On March 21, 2022, for the first time Vonovia issued two social bonds, with terms of 3.85 and 6.25 years, and a green bond with a ten-year term that is 100% EU Taxonomy-compliant. These were the first such bonds to be issued by a company in the real estate sector.
“The bonds demonstrate that we take our social responsibilities seriously and are committed to our sustainability strategy.”
The generation of renewable energies via, e.g., photovoltaic systems is one of the selection criteria for the awarding of green bonds.
The proceeds from the social bonds will be invested in social projects. This will include, for example, housing for low-income households and agreements for privately financed housing in Berlin with rents that are at least 15% lower than the standard local comparative rent charges, ensuring access to affordable housing. The proceeds from the social bonds will also be used to modernize housing to make it more accessible for an increasingly elderly population. Further information on green bonds, social bonds, and the use of funds, can be found in the Sustainable Finance Framework.