• Volume of US$ 1.25 bn
  • First US$-denominated green subordinated bond to be issued by a European insurer in the US market (Rule 144A)
By successfully placing its first subordinated bond on the US market, Munich Re has impressively demonstrated its attractiveness for new groups of investors. In structuring this bond as a green bond, we are the first European insurer to break such new ground in this market segment. At the same time, the green bond supports the climate targets of our Ambition 2025 strategy.
Christoph Jurecka
CFO

Following its successful placement of green bonds in 2020 and 2021, Munich Re has now successfully placed its first green subordinated bond, for the first time in the company's history in a private placement to qualified institutional buyers in the U.S. market under Rule 144A and outside the U.S. in accordance with Regulation S of the U. S. Securities Act of 1933. By issuing this bond in the globally important US$ 144A market segment, Munich Re has succeeded in expanding and diversifying its group of investors.

The volume of the issue is US$ 1.25 bn. The bond has a coupon of 5.875% and matures in 2042.

The green bond underlines Munich Re's commitment to the Paris Climate Agreement and supports its strategic goal of significantly increasing investments in energy efficiency and renewable energies to combat climate change. Munich Re will use the capital raised 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 wastewater management, the eco-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land.

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Munich Re Group - Münchener Rück AG published this content on 24 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2022 08:07:08 UTC.