Hogan Lovells advises banks on the placement of the world's first Green Covered Bond under a legal framework
Led by Frankfurt partner Jochen Seitz, the international law firm Hogan Lovells advised Norddeutsche Landesbank - Girozentrale -, ABN AMRO Bank N.V., Commerzbank Aktiengesellschaft and Crédit Agricole Corporate and Investment Bank as lead managers on the legal documentation of the first "Lettre de Gage énergies renouvelables" issued by NORD/LB Luxembourg S.A. Covered Bond Bank under Luxembourg law.
The so-called "Lettre de Gage énergies renouvelables" (renewable energy covered bond) represents a new category of covered bonds under the Law of 5 April 1993 on the financial sector, as amended (the "Banking Act"). The Banking Act restricts the cover pool assets to assets for this category of covered bonds deriving from renewable energies. The possibility of including green financing notably for wind energy and solar projects in the cover pool results from the amendment of the Banking Act for "Lettres de Gage énergies renouvelables" in 2018. NORD/LB CBB is now the first covered bond bank to issue such a green covered bond, which is the first worldwide issuance of a green covered bond under a legal framework. The "Lettre de Gage énergies renouvelables" has a nominal amount of EUR 300 million, a term of five years and an interest coupon of 0.05 per cent.
"Investor interest in green bonds has increased enormously in recent years. We are pleased that we were able to provide the financial institutions with our legal expertise for this important and future-oriented transaction," said Jochen Seitz.
Hogan Lovells team for the financial institutions
Frankfurt
Dr. Jochen Seitz (Partner), Dr. Stefan Schrewe, Frank Salzgeber (Associates) (all International Debt Capital Markets);
Luxembourg
Pierre Reuter (Partner), Ariane Mehrshahi Marks (Counsel), Agnes Merz (Associate) (all International Debt Capital Markets).
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