Berlin Hyp: ESG bonds are the trending standard now.

February 20, 2024
1 min read


– Berlin Hyp has significantly increased its green finance portfolio, surpassing €10 billion for the first time.
– The bank now has more benchmark-sized ESG bonds outstanding than conventional ones.
– Berlin Hyp issued a dual tranche bond combining a social bond with a green bond in 2023.
– The bank updated its decarbonisation pathway in 2023, aiming to reach net zero by 2050.
– Berlin Hyp plans to issue three benchmark-sized ESG bonds in 2024.

Berlin Hyp, a commercial real estate bank, has successfully navigated a challenging year in European commercial real estate markets, with interest rate increases and inflationary pressure affecting the industry. Despite these challenges, the bank has managed to grow its social and green finance portfolios in 2023, surpassing €10 billion in its green finance portfolio for the first time. This significant milestone now accounts for more than one-third of the bank’s total portfolio.

One of the key highlights for Berlin Hyp in 2023 was the issuance of a dual tranche bond, combining a social bond with a green bond, each with different maturities. This innovative approach was well received in the market, encouraging the bank to further increase ESG bond issuance in the future. Berlin Hyp has also updated its decarbonisation pathway, aiming to reach net zero by 2050 and tying pathways to pricing to incentivize projects that align with their sustainability goals.

Looking ahead to 2024, Berlin Hyp plans to issue three benchmark-sized ESG bonds and continues to focus on green and energy-efficient buildings to drive sustainable finance growth. The bank’s commitment to sustainability and transparency has positioned it as a leader in the ESG bond market, with a database of EPC data that sets it apart from other banks. With a strong focus on social and green finance, Berlin Hyp remains dedicated to decarbonising its lending portfolio and leading the way in sustainable finance practices.

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