Talanx has issued its first “green” bond in what it says is a further step in implementing its sustainability strategy.

At the start of the month, the HDI Global parent published a Green Bond Framework for financing sustainable projects, particularly renewable energy generation and 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,” Talanx CFO Jan Wicke said. “It impacts on primary insurance and reinsurance, as well as on our investment.”

Talanx aims to cut CO2 emissions of its liquid portfolio by 30% by 2025 and says the new bond makes a significant contribution to achieving its objectives in the capital market.

The subordinated bond had a volume of €500 million ($794.37 million) and was issued primarily to institutional investors. It was more than three times oversubscribed.

The green bond was rated “A-” by S&P Global Ratings and it is listed on the Luxembourg stock exchange. ABN AMRO was Sole Green Bond Structuring Advisor and Joint Lead Manager. Talanx says it optimises solvency and liquidity with the issuance and the bond took advantage of favourable conditions in the capital market.

The bond has a fixed coupon of 1.75% and the first date for repayment is June 2032.