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Deutsche Kreditbank (DKB) enjoyed a healthy reception for its senior debut on Wednesday, with its choice of green funding a clear match for its operations.
DKB is an online retail bank that is 100% owned by BayernLB, and has been active in financing renewable energy projects since 1996. It has a "core green" loan portfolio of around EUR 10bn.
Stefan Unterlandstattner, chief executive of DKB, said in a statement that the new issue was the first entirely green bond to have been issued by a commercial German bank, adding that the EUR 500m five year transaction represented a logical step forwards for the bank's business model.
DKB's inaugural green bond programme is capped at EUR 500m, in maturities of up to five years, but the scope of the German lender's socially responsible operations provides ample grounds for it to return to the capital markets to raise more green funds.
In a note published by Oekom Research...