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Allen & Overy advises the Federal Republic of Germany on the issue of a Green Federal bond

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Scharnke Martin
Martin Scharnke

Partner

Frankfurt am Main

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Image of Christian Klöpfer
Christian Klöpfer

Counsel

Frankfurt am Main

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Sascha Fröhlig

Associate

Frankfurt am Main

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Steffen Mueller

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18 May 2021

Allen & Overy LLP has advised the Federal Republic of Germany (the Federal Republic), represented by the Federal Ministry of Finance, which was in turn represented by Bundesrepublik Deutschland - Finanzagentur GmbH, in connection with the successful issue of a Green Federal bond with a volume of EUR 6 billion.

The Green Federal bond has a 30-year term and a fixed coupon of 0.00%. The proceeds are allocated to green expenditures already made by the Federal Republic in the five sectors (1) transport, (2) international cooperation, (3) research, innovation and information, (4) energy and industry, (5) agriculture, forestry, natural landscapes and biodiversity in accordance with the Green Bond Framework of the Federal Republic of Germany.

The placement of the 30-year Green Federal bond was carried out in a syndication process involving a banking syndicate led by BNP Paribas, BofA Securities, Citi, Commerzbank, DZ BANK and HSBC. The issue was more than six times oversubscribed.

The Allen & Overy team comprised partner Martin Scharnke, counsel Christian Klöpfer and associate Sascha Fröhlig (all Capital Markets, Frankfurt).

Inhouse advice on the bond issue at Bundesrepublik Deutschland - Finanzagentur GmbH was provided by Dr Arnd Düker and Bastian Martin.

Allen & Overy's ICM team regularly advises companies and banks in connection with domestic and international capital market transactions. Recently, this also included advising numerous issuers on the practical implementation of ESG and green bond issues. In recent years, Allen & Overy has moreover regularly advised banking syndicates in connection with benchmark bonds, covered bonds (Pfandbriefe) and subordinated notes.