Financing Environment
The capital markets developed positively in 2025. The geopolitical shift to expansionary measures continued. Many central banks lowered their key interest rates or signaled their scope to ease.
The European Central Bank (ECB) ushered in the turnaround in its interest rate policy in 2024 after the key rate peak of 4.00% (June 2023). The key interest rate has been lowered by 0.25% several times since then. The last rate cut was in June 2025, so that the key interest rate is currently 2.00%.
In 2025, the yield on German government bonds with a ten-year term averaged around 2.63%.
In 2024, the US Federal Reserve Bank (Fed) carried out a total of three fed fund rate cuts, and lowered the key interest rate by 100 basis points in the second half of the year. The Fed implemented three further interest rate cuts of 0.25% each in 2025, so that the benchmark interest rate is now in a range of 3.50% to 3.75%.
The turnaround in interest rates initiated by the Bank of England (BoE) in 2024 also continued. Since the first rate cut in August 2024 to 5%, further cuts have followed, with the last one in December 2025 bringing the key interest rate to 3.75%.
Vonovia’s Bond Issue Volume per Year*
One of the World’s Biggest Capital Market Issuers
The rating agency Moody’s has published an investment grade rating for Vonovia of “Baa1 outlook stable.” The rating was last confirmed in December 2025.
Spread Development (in Basis Points)
The rating agency Standard & Poor’s has assigned Vonovia SE a long-term corporate credit rating of BBB+ and a short-term credit rating of A-2. The “BBB+ outlook stable” rating was confirmed in August 2025.
The Berlin-based Scope Group has also issued Vonovia SE a rating of A-. The "negative" outlook was confirmed in June 2025.
Fitch became the fourth rating agency to publish ratings for Vonovia, with its first rating in March 2024. The “BBB+ outlook stable” rating is also an investment grade rating. The rating was last confirmed in December 2025.
Demand for real estate remained high in 2025, particularly for the low-risk asset classes such as residential real estate. Vonovia's size and market position, including increasing diversification across regulated residential real estate markets, a strong competitive position and ongoing excellent access to the capital markets, are among the material factors that reinforced the company's first-class credit rating in 2025, as well. Other features include the balanced mix of financing instruments and a well-diversified maturity profile. In 2025, Vonovia consistently took advantage of the opportunities presented by the capital markets, despite a challenging market environment.
This was also reflected in successful order books and attractive interest coupons. Vonovia was active six times on different capital markets in 2025, including with several debut transactions. It issued the following bonds in the fiscal year with a total issue volume equivalent to € 4.9 billion:
- In April, Vonovia issued its first bond in Norwegian krone with a volume of NOK 1 million (approx. € 88.3 million) and a term of eight years (debut).
- A variable rate bond (2NC1 bond) with a volume of € 750 million and a term of two year was also issued in April (debut).
- In May, Vonovia issued a convertible bond in two tranches with a total volume of € 1.3 billion. Both tranches have a volume of € 650 million each. The first has a term of five years and the second a term of seven years (debut).
- In June, Vonovia issued two bonds (variable and fixed rate) denominated in Swedish krona, as a green bond with a total volume of SEK 1 billion (approx. € 91.2 million). Both bonds have terms of three years.
- In September, Vonovia issued an Australian dollar bond in two tranches and with a total volume of AUD 850 million. The first tranche has a volume of AUD 300 million (approx. € 168.3 million) and a term of seven years, while the second has a volume of AUD 550 million (approx. € 308.6 million) and a term of 10 years (debut).
- In November, Vonovia issued a EUR bond in three tranches with a total volume of € 2.25 billion. The first tranche has a volume of € 800 million and a term of seven years, the second tranche is a green bond with a volume of € 850 million and a term of 11 years and the third has a volume of € 600 million and a term of 15 years.
The volume-weighted average interest cost, after hedging, of the new bonds comes to 2.85% in 2025, with a weighted average maturity of 7.8 years.
Taking into consideration the EUR bond issue volume (excluding the convertible bond) of € 3.0 billion in 2025 (2024: € 850 million from the EUR bond market), Vonovia (incl. Deutsche Wohnen) ranks, according to an analysis by Dealogic, among the top 10 EUR investment grade issuers based on the total issue volume for the years from 2015 to 2025 (2024: top 10 EUR investment grade issuers for the period from 2014 to 2024).
The partial buyback of two bonds with a total volume of € 800 million (ISIN DE000A30VQA4, DE000A30VQB2) was completed in June 2025.
In addition, Vonovia successfully completed further partial buybacks of four bonds in November 2025 (ISIN DE000A28ZQP7, DE000A19B8E2, DE000A30VQA4, DE000A3E5MG8) with a total volume of € 559.6 million.
As it has done in previous years, Vonovia invested significantly in credit relations activities again in 2025. In order to further diversify its investor base, Vonovia took part in various debt conferences and organized several debt roadshows in Europe, Asia and Australia.
Vonovia held its second Lenders Forum as a purely face-to-face event at its headquarters in Bochum on June 27, 2025. The event focused primarily on Vonovia's initiatives for organic growth and the related strategic investments. Around 50 participants from approx. 30 banks and insurance providers attended the event. The presentations held at the Lenders Forum can be downloaded online on the Investor Relations website.