Financing

In its announcement of August 23, 2024, the agency Standard & Poor’s indicated that Vonovia’s rating remains unchanged at BBB+ with a stable outlook for its long-term issuer credit rating and A-2 for its short-term issuer credit rating, while Vonovia’s issued and unsecured bonds are rated BBB+.

In its announcement of February 4, 2025, the rating agency Moody’s confirmed Vonovia’s rating of Baa1 with a stable outlook.

The rating agency Scope has, in its announcement of July 2, 2024, awarded Vonovia an A- investment grade rating with negative outlook.

On March 28, 2024, the rating agency Fitch awarded Vonovia a rating for the first time: BBB+ with a stable outlook.

Vonovia SE has launched an EMTN (European medium-term notes) program. This program allows funds to be raised quickly at any time, without any major administrative outlay, using bond issues. The published prospectus for the € 40 billion program was expanded on November 8, 2024, must be updated annually and requires approval from the financial supervisory authority of the Grand Duchy of Luxembourg (CSSF).

As of the reporting date of December 31, 2024, Vonovia had placed a total bond volume of € 22.8 billion, € 21.7 billion of which relates to the EMTN program. Deutsche Wohnen bonds worth a further € 1.8 billion were also assumed.

A bond in the amount of € 328.6 million was repaid as scheduled on January 15, 2024.

On January 18, 2024, Vonovia issued an unsecured GBP 400.0 million (approx. € 465.1 million) bond with a twelve-year term and a 5.5% coupon (4.55% after currency hedging).  

On February 14, 2024, Vonovia issued another unsecured bond with a volume of CHF 150.0 million (approx. € 159.3 million), a five-year term and a 2.565% coupon (4.16% after currency hedging).

In January and February 2024, several drawdowns were made under the Commercial Paper Program, with a total volume of € 500.0 million.

On March 28, 2024, an amount of € 150.0 million was disbursed under a secured financing agreement concluded with Ergo in December 2023.

With a total volume of € 138.7 million, two secured bullet loans were repaid on March 31, 2024.

On April 8, 2024, a € 336.1 million bond was repaid as scheduled.

A further bond, denominated in Swedish krona and with a volume of SEK 500.0 million (around € 48.5 million), was repaid as scheduled on April 8, 2024.

On April 10, 2024, Vonovia issued a € 850.0 million unsecured social bond with a 4.25% coupon and a ten-year term. 

Vonovia placed a bond with a volume of SEK 750.0 million (approx. € 66.9 million) with a two-year term as part of a private placement on June 19, 2024. The bond is a floating-rate bond (3M STIBOR plus 1.30% margin; 4.51% after interest and currency hedging) and is structured as a social bond.  

On August 6, 2024, Vonovia took out secured financing with Hamburg Commercial Bank in the amount of € 135.0 million with a maturity of seven years. The amount was disbursed on August 28, 2024.

On August 26, 2024, Vonovia issued a CHF 235.0 million (€ 247.8 million) bond with a seven-year term. The coupon is 2.000% p.a. (or 3.897% p.a. after currency hedging).

On September 9, 2024, Vonovia took out a loan in the amount of € 110.0 million with a ten-year term with Münchener Hypothekenbank. The loan was disbursed on September 12, 2024.

A bond in the amount of € 278.3 million was repaid as scheduled on September 16, 2024.

On September 26, 2024, Vonovia issued an SEK 500.0 million (€ 44.3 million) bond with a four-year term. The bond is a floating-rate bond (3M STIBOR plus 142 basis points).

On December 6, 2024, a € 871.0 million bond was repaid as scheduled.

On December 13, 2024, Vonovia took out secured financing with Bayern LB in the amount of € 100.0 million with a maturity of ten years. The loan was disbursed on December 20, 2024.

Also on December 13, 2024, Vonovia took out secured financing with Ergo Versicherung in the amount of € 75.0 million with a maturity of 15 years. The loan was disbursed on December 19, 2024.

On December 18, 2024, Vonovia concluded a loan agreement with DZ Hyp in the amount of € 100.0 million with a maturity of ten years. The loan was disbursed on January 14, 2025.

The debt maturity profile of Vonovia’s financing was as follows as of December 31, 2024:

Debt Maturity Profile

The key debt ratios are as follows as of the reporting date (calculated based on the definitions used in the financing documentation):

In connection with the issue of unsecured bonds and financing, as well as structured secured financing, Vonovia has undertaken to comply with the following standard market covenants:

The existing structured and secured financing arrangements also require adherence to certain standard market covenants. Any failure to meet the agreed financial covenants could have a negative effect on the liquidity status.

The financial covenants (calculation based on the definitions in the financing documentation) have been fulfilled as of the reporting date.