Munich Re has issued a new €1bn green bond to boost its capital base and help finance sustainable projects.
The company said the new capital will focus on growth opportunities emerging in many reinsurance markets and be put to use on projects in accordance with its 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.
It is the second green bond issued by Munich following its first placement last year. The bond has a coupon of 1.00% and will mature in 2042.
“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,” said Munch Re CFO Christoph Jurecka.