Munich Re issues another green bond
- Volume of €1bn
- Strengthening the capital base to finance profitable growth
- Green bond to support Munich Re’s climate strategy
Climate protection is an integral part of our Ambition 2025 Group strategy. By issuing a green bond, we have once again leveraged the capital markets to fund green investments. We strengthen our capital base, which gives us the financial flexibility to take advantage of current growth opportunities.
After successfully issuing a green bond in 2020, Munich Re has launched a green subordinated bond for the second time in its corporate history. The volume of the issue is €1bn. The bond has a coupon of 1.00 % and will mature in 2042.
By launching the bond Munich Re is reinforcing its capital base with a focus on growth opportunities that are emerging in many reinsurance markets.
As part of Ambition 2025, Munich Re has adopted a broad climate protection programme featuring concrete climate protection targets for its investments, insurance business and operations. This bond highlights Munich Re’s commitment to using the capital markets to help 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 waste water management, the eco-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land.
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to the 2019 Pacific typhoon season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
This media release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to make them conform to future events or developments.