Reinsurance giant rolls out €1bn green bond to support climate strategy

One of the world's largest reinsurers has launched a green subordinated bond for the second time in its corporate history, as it looks to reinforce its capital base with a focus on growth opportunities that are emerging in many reinsurance markets.

Munich Re has issued another green bond, following its €1.25 billion green bond in 2020, highlighting its commitment to using the capital markets to help achieve a climate-friendly transformation of the economy.

The volume of the latest issue is €1 billion. The bond has a coupon of 1.00 percent and will mature in 2042.

As part of Ambition 2025, Munich Re has adopted a broad climate protection programme featuring concrete climate protection targets for its investments, insurance business and operations.

The reinsurer will use the raised capital to finance or refinance sustainable projects in accordance with the company’s Green Bond Framework. Projects include investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and waste water management, the eco-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land.

Christoph Jurecka (pictured), chief financial officer of Munich Re, said: “Climate protection is an integral part of our Ambition 2025 Group strategy. By issuing a green bond, we have once again leveraged the capital markets to fund green investments. We strengthen our capital base, which gives us the financial flexibility to take advantage of current growth opportunities.”

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