Deutsche Post AG Issues €500 Million Sustainability-Linked Bond Tied to Carbon Reduction Targets

Deutsche Post AG Issues €500 Million Sustainability-Linked Bond Tied to Carbon Reduction Targets

(IN BRIEF) Deutsche Post AG has successfully issued its first sustainability-linked bond worth €500 million. The bond’s interest rate is tied to the company’s ambitious CO2 emissions reduction targets. Deutsche Post AG aims to decrease its greenhouse gas emissions to below 29 million tonnes of CO2e by 2030. The bond has a fixed coupon rate of 3.375% per annum, and failure to achieve the sustainability targets will result in an interest rate increase. The issuance showcases the company’s commitment to reducing its carbon footprint and supporting environmental sustainability. HSBC, SEB, Commerzbank, and ING played key roles in the transaction.

(PRESS RELEASE) BONN, 26-Jun-2023 — /EuropaWire/ — On June 26, 2023, Deutsche Post AG successfully completed the placement of its first sustainability-linked bond, valued at €500 million and maturing in 2033. The issuance, conducted under the established debt issuance program launched in 2012, will primarily support general corporate purposes and the refinancing of existing financial liabilities. The bond carries a fixed coupon rate of 3.375% per annum.

The interest rate of the bond is tied to specific key performance indicators (KPIs) outlined in the Group’s Sustainability-Linked Finance Framework, published in November 2022. Deutsche Post AG is steadfast in its commitment to reducing absolute Scope 1 & 2 GHG emissions by 42% and absolute Scope 3 GHG emissions by 25% by 2030, based on a 2021 baseline. Should the company fail to meet one or both of these sustainability performance targets (SPTs), the interest rate will increase by 0.25 percentage points per annum from 2031 until maturity.

“I am thrilled that Deutsche Post AG has successfully launched its inaugural sustainability-linked bond. This transaction solidifies our strong dedication to the green transformation of our Group and the ambitious CO2 emissions reduction targets we have set for ourselves,” stated Chief Financial Officer Melanie Kreis.

Deutsche Post AG holds an “A2” rating from Moody’s with a stable outlook and a “BBB+” rating from Fitch with a positive outlook. HSBC acted as the global coordinator, while SEB served as the ESG structuring advisor. Commerzbank and ING also participated as joint bookrunners.

Media contacts:

Dirk Klasen
Spokesperson for Corporate Issues & Sustainability (ESG) and Financial Communications

Deutsche Post DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany

Phone: +49 (0)228 182 9944

SOURCE: Deutsche Post AG