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Corporate news

25 November 2021

Talanx takes a further step in the process of implementing its comprehensive sustainability strategy
Green Bond 3.5 fold oversubscribed after short subscription phase

Talanx has issued its first Green Bond as a subordinated bond with a volume of EUR 500 million, primarily to institutional investors from Germany and abroad. Overall, the book was significantly oversubscribed. The bond denominated in euros has a fixed coupon of 1.75 percent and the first date for repayment is 1 June 2032. Talanx had already published a Green Bond Framework at the beginning of November 2021, which creates the framework conditions for the financing and refinancing of sustainable projects – most importantly in the area of renewable energy generation, and in residential and commercial properties with low energy consumption and reduced CO2 emissions.

“Climate change is a serious threat that exerts an impact on our business as an international insurance group in many different ways. It impacts on primary insurance and reinsurance, as well as on our investment. The fact that we have now reached a further milestone on our sustainability roadmap with the Green Bond represents an important step for our group,” commented Dr Jan Wicke, Chief Financial Officer of Talanx AG.

The Group optimises solvency and liquidity with the issuance. Furthermore, the bond takes advantage of the current favourable conditions in the capital market. The Green Bond is an important building block for the ambitious Talanx sustainability strategy. It makes a significant contribution to achieving the objectives of the Group in the capital market. A key undertaking is to achieve a 30% reduction in the CO2 emissions of the liquid portfolio by 2025.

Talanx AG is the issuer for the bond. The bond is rated with “A-” by rating agency S&P Global Ratings and it is listed on the Luxembourg stock exchange. The transaction was arranged by ABN AMRO as Sole Green Bond Structuring Advisor and Joint Lead Manager, Barclays, Deutsche Bank and Natixis as Joint Lead Managers, and BayernLB as Co-Lead Manager. Sustainalytics certifies the compatibility of the framework with the ICMA Green Bond Principles 2021 and the EU Taxonomy (Climate Delegated Act, June 2021) in the second party opinion.

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Disclaimer

This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.