Commerzbank joins Daimler in celebrating the win of Green Bond of the Year (Corporate) in Environmental Finance’s Bond Awards 2021
Daimler’s inaugural green bond issuance in September 2020 was submitted by Commerzbank and has won the award for Green Bond of the Year (Corporate) in Environmental Finance’s Bond Awards 2021.
“We are delighted that this transaction has been recognised by Environmental Finance,” said Mirko Gerhold, Head of Corporate Bond Origination & Solutions at Commerzbank. “The receipt of such a respected industry award is testament to the significance of this transaction to the green transformation of the automotive sector. Commerzbank is proud to have been part of this success story and remains committed to supporting the development of sustainable finance across all sectors”.
Judged by an independent panel of investors, the Environmental Finance Bond Awards are highly regarded in the sector, and recognise the market’s leading green, social and sustainability bond deals.
Daimler’s issuance was the first significant green bond transaction out of the automotive sector and the proceeds will be used to develop and produce zero-emission vehicles, such as battery electric vehicles. Commerzbank acted as a joint bookrunner for the €1 billion bond, which pays a coupon of 0.75%.
With this issuance, Daimler achieved its largest-ever orderbook for a EUR-denominated transaction. Demand peaked above €8.4 billion, and the final orderbook exceeded €4.2 billion. The transaction attracted highly granular investor interest, including several new investors for Daimler, and an above-average number of large orders.
The transaction achieved a low new issue premium of minus 25bp vs fair value of its secondary curve.
The 10-year bond is aligned with the International Capital Market Association’s (ICMA) Green Bond Principles, of which Commerzbank has been member since 2014. It is also governed by Daimler’s Green Finance Framework, which received a “Dark Green” shading from Cicero; the highest category – only allocated to projects and solutions that “correspond to the long-term vision of a low carbon and climate resilient future.”