ABN AMRO places Europe’s first green Tier 2 bank bond for De Volksbank

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De Volksbank yesterday issued a Tier 2 bond to raise 500 million euros in subordinated debt. It is the first time in Europe that a bank has issued a green Tier 2 bond. ABN AMRO assisted De Volksbank by structuring the Green Bond Framework last year and by overseeing the process of placing the instrument with investors.

Managing Director Bart Toering of De Volksbank explains, “The Green Bond Framework, which we developed with ABN AMRO’s help, will support our sustainability transition. The green Tier 2 transaction marks a new step forward, following the issuance of our first green bond last year. It reflects our efforts to make our balance sheet energy-neutral by 2030.”

The green Tier 2 bond attracted overwhelming interest from investors: the issuance was oversubscribed by a factor of 3.5, with more than 120 investors representing a total demand of 1.75 billion euros. Three quarters of the bonds were issued to green investors.

ABN AMRO’s Head of Green Bonds Joop Hessels adds, “This confirms once more that sustainable professional investors are interested in green financial products. It’s wonderful that we’ve been able to help de Volksbank to structure the Green Bond Framework and place this innovative green Tier 2 bond.”

The transaction is another exciting example of how ABN AMRO is helping its clients to make the transition to a sustainable economy.

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