Commerzbank supports Hamburger Hochbahn AG in green bond for carbon-neutral mobility
“Making urban mobility more sustainable requires enormous investment. With the successful placement of this green bond, we have broken fresh ground for German transportation companies in their fundraising efforts. The bond offers an attractive rate, at the same time demonstrating that HOCHBAHN is not only extremely successful but also verifiably committed to sustainable management and action.”
Management Board Member responsible for Finance and Sustainability,
Hamburger Hochbahn AG
The company: HOCHBAHN keeps Hamburg moving – quietly and cleanly
Hamburger Hochbahn AG – known simply as “HOCHBAHN” – is the largest partner in Hamburg’s transport network, and wholly owned by the Free and Hanseatic City of Hamburg. Managed following the principles of the private sector, HOCHBAHN and its 6,000 employees handle 1.2 million passengers per day. HOCHBAHN is responsible for more than 1,400 bus stops and 93 metro stations along a line network covering more than 1,000 kilometres. But HOCHBAHN is more than a transportation company. It is committed to reducing energy consumption, exhaust emissions and noise in Hamburg to increase the quality of life in the city.
Bond to finance sustainable transportation project six times oversubscribed
As the first German transportation company to issue a green bond, HOCHBAHN is breaking fresh ground to secure funding for sustainable transport projects. The transaction was led by an international banking consortium, whose sole German member was Commerzbank. As well as a top rating (AAA by Fitch, both for HOCHBAHN and the bond itself), this was preceded first and foremost by an outstanding assessment of the company’s sustainability strategy. This made it possible for HOCHBAHN to raise 500 million euros in the “green” capital markets with this new bond, which was nearly six times oversubscribed. The successful placement ensures the financing of important transportation projects to make urban mobility more sustainable and Hamburg carbon-neutral.
Where clients are looking to place sustainable bonds on the capital markets, Commerzbank regularly plays a leading role in assisting them. “HOCHBAHN was a first-time issuer, but its ownership structure made it an interesting investment target for both global investors active in public green bonds and green corporate bond investors. As such, a very broad range of investors from all over the world had a close look at the corporate sustainability strategy and the framework for this bond. We are extremely proud to have supported HOCHBAHN in this successful endeavour”, says Nicole Nehren, bonds specialist at Commerzbank.