Green Pfandbrief. Vienna, 31 January 2019

Transcription

1 A partnership built on trust Green Pfandbrief Bodo Winkler, Head of Funding & Investor Relations Vienna, 31 January 2019 All data as of 31 October 2018 if not marked differently Masterfile Royalty Free

2 German Pfandbrief System Pfandbrief is a bank debenture Cover assets remain on balance Pfandbrief is collateralized by cover assets subject to strict quality requirements: regional restrictions conservative loan appraisal in property, ship and aircraft lending only senior loan tranches up to 60% of mortgage lending value eligible for cover loans to public sector or loans with public sector guarantee Upon deterioration of cover asset quality: credit check and potential revision or substitution 2

3 Implementation of the Green Bond Principles Use of Proceeds Refinancing eligible assets on Berlin Hyp s balance sheet Eligible assets include loans for: (i) acquisition or (ii) construction or (iii) refurbishment of Green Buildings as defined in the eligibility criteria These Green Buildings serve as collateral for loans granted by or to be granted by Berlin Hyp. If they are used for Green Pfandbriefe the loans have to be eligible for and included in or to be included in the bank's mortgage cover pool Project Evaluation and Selection Berlin Hyp has established a Green Building Commission (GBC) which is comprised of one representative from each of the following divisions of the bank: Corporate Strategy, Origination, Credit, Appraisal and Treasury GBC discusses whether eligibility criteria are still in line with market best practices of Green Building definition Management of Proceeds Eligible assets already exist on Berlin Hyp's balance sheet (and in the case of a Green Pfandbrief in its mortgage cover pool) at issuance of a new Green Bond They form a sub-portfolio within the bank s overall mortgage loan portfolio Reporting The bank shall report on the development of this sub-portfolio on an annual basis Berlin Hyp has established a separate website which is exclusively used for providing information about its green bonds (Green Pfandbriefe and Green Senior) at 3

4 Use of Proceeds Portfolio Development Belgium Czech Republic France mn Green Finance Portfolio Green Senior Green Pfandbrief Green Finance Portfolio - Total Feb Feb Feb Feb Okt Type of Use Certificates Countries Germany Great Britain Netherlands Poland Breeam Good HQE High Level LEED Platinum HQE Basic Level DGNB Platin Breeam Very Good LEED Gold DGNB Gold Breeam Excellent Energy Certificate Office Buildings Retail Buildings Social Buildings Multi-family dwellings Feb 18 Okt Feb 18 Okt 18 Logistic Feb 18 Okt 18 4

5 Process of Evaluation and Selection Criteria Green Buildings means energy efficient commercial real estate buildings with an energy demand or consumption that should not exceed: Property type Residential Office Retail Energy demand heating kwh/(m²*a) New residential properties 50 Old resedential properties 75 Office buildings without air conditioning 110 Office buildings with air conditioning 135 Retail buildings (shopping malls, department stores) 70 Other retail buildings 95 Framework old Framework new 1 Energy demand heating kwh/(m²*a) Energy demand electricity kwh/(m²*a) Total kwh/(m²*a) Hotels Logistics buildings Production buildings 110 Not relevant In addition/alternatively eligibility criteria include the following external sustainability certifications 2 : LEED BREEAM DGNB HQE Gold or above Very Good or above Gold or above High Level or above Eligible assets shall also meet other environmental and/or social criteria. These assets are not to be used for the production of arms, pesticides, tobacco, pornography, nuclear power, coal, oil and fossil fuels: 1) Effective since April ) LEED, BREEAM, DGNB and HQE are providers of sustainability certificates for buildings. Buildings financed by Berlin Hyp after issuance of its inaugural Green Pfandbrief on 27 April 2015 have to score at least 50 per cent in the energy efficiency component of the Green Building certificate if the building does not qualify already by its energy demand or consumption as defined above. 5

6 Reporting (I) Berlin Hyp provides information on its Green Bonds on its website which has been established exclusively for the Green Bond reporting. Among others, the following information is available. Portfolio reporting (annually): Nominal amount and term structure of the Green Bonds and assets Loan amount, regional distribution, object type/use, certificates New business (annually): New business in eligible assets since the last report on a loan-by-loan basis Impact reporting (annually): Carbon emissions avoidance (impact reporting) evaluated in comparison to one or more appropriate baselines and documentation of methodology External review: Second Party Opinion of oekom research AG oekom research AG assesses the Green Bonds sustainability on an annual basis. Berlin Hyp publishes this re-verification. 6

7 ,,,,, Reporting (II) Impact Reporting Estimation to quantify CO2 savings from loans for Green Buildings used for Green Bonds: 1. First Benchmark: Average energy efficiency of European investment properties./. Energery demand of the buidling = Energy savings & Second Benchmark: Current energy reference values for different property classes according to EnEV./. Energery demand of the buidling = Energy savings 2. Calculation of the conversion factor of Kwh into CO 2 emission (subject to the individual energy mix of each country) 3.! "# $ %!& '&(), + &."( "# / &( 012! "# $ %!& '&(),, + Avoided tco 2 / mn / year (as of ) 100% allocated to Berlin Hyp financing Proportionally allocated to Berlin Hyp initial financing share against European average 36.3 (PY 28.7) 21.1 (PY 13.7) against current EnEV standards 15.7 (PY 9.6) 8.7 (PY 4.5) 7

8 Additionality Key Developments 04/2015 Issuance of the first Green Pfandbrief Establishing a Green Building Commission Introduction of standardized processes 03/ / / / /2017 Sales promotion: pricing incentives for loans for Green Bulidings Publication of first annual reporting Development of a Green Bond Program Issuance of Berlin Hyp s first green Senior Unsecured 71% of the green loan portfolio rated 1-3 vs 57% of the overall portfolio Strategic objective: 20% of the loan portfolio to be green by 2020 Member of the Green Securities Steering Comittee 10/ /2018 Largest Green Bond issuer in the financial institution-segment Further strengthening of eligibility criteria in Berlin Hyp s Green Bond Framework 06/2018 Participation in EeMAP pilot scheme 8

9 Berlin Hyp Brief Overview Founded 1868 One of Germany s leading commercial real estate financiers Main refinancing instrument: Mortgage Pfandbrief Integration into Savings Banks Finance Group Institutional Protection Scheme; 0% risk-weighted for savings banks Exclusively owned by savings banks Group internal services and business Green Bonds as an important amendment to the funding mix Issuer of the first Green Pfandbrief First issuer with Green Bonds in more than one asset class Largest European bank issuer of Green Bonds in the financial institution segment 09/ Total Assets (EUR bn) 27,2 27, Allocation to the fund for general banking risks (EUR mn) 92,5 70, Pre-tax profit (EUR mn) 85,8 117, CET1 Ratio 11,8% 12,5% 13.5% Total Capital Ratio 14,4% 15,5% 17.5% MREL (RWA) 67,6% 73,7% 87.2% Ratings Senior Non-Preferred Senior Preferred Pfandbriefe Moody s A2 Aa2 Aaa Fitch A+ A+ -- 9

10 Your Contacts at Berlin Hyp Bodo Winkler Head of Funding & Investor Relations Tel.: Felix Zillmann Funding & Investor Relations Tel.: You will find further information on Berlin Hyp if you visit our website Annual reports Interim reports Cover pool reports according to 28 Pfandbrief Act Sustainability Reports Base prospectus Our website provides further information regarding: Green Bond Framework Use of Proceeds Annual reporting Second Party Opinion Re-Verification 10

11 Disclaimer This presentation was produced by Berlin Hyp AG (hereinafter Berlin Hyp ) for information purposes only. It is not investment advice. The prior consent of Berlin Hyp is required for the copying of information or data, in particular for the use of texts, parts of text or picture material. To the best of our knowledge, the facts and information contained in this presentation are correct at the time of production and are subject to change in future. Neither Berlin Hyp nor members of its Board of Management, management staff, employees, advisors or other persons furnish any warranty or guarantee, explicit or implied, in relation to the correctness or completeness of the information contained in this presentation. All liability by Berlin Hyp, members of its Board of Management, management staff, employees, advisors or other persons for losses incurred, directly or indirectly, in whatever way by the use of this presentation or its contents or otherwise in connection therewith is excluded. Every reasonable care has been taken to ensure that the facts contained in this presentation are correct at the time they were collected, and that the views expressed are fair and reasonable. However, this document contains selected information and is merely an introduction to and overview of the business activities of Berlin Hyp. Opinions expressed in this document can change at any time. Neither Berlin Hyp nor any other person is obliged to correct, update or keep updated the information contained herein, or inform you about this. A significant proportion of the information contained in this document, including market data and information about trends, is based on estimates or expectations of Berlin Hyp and there is no guarantee that these estimates or expectations will be proved correct in future. This presentation may contain future-oriented statements which reflect our present view with regard to future developments. These statements can be identified as such by words like expectation or target or forecast and similar expressions, or by their context. These statements are made on the basis of current knowledge and current assumptions in each case at the time they are made. They harbour risks and uncertainties including but not limited to changes in interest rates or exchange rates. If these risks or uncertainties materialise, or if the knowledge or assumptions forming the basis of our future-oriented statements prove incorrect, actual future results, performance or events in the future could differ from those described in these statements. There is no obligation to update futureoriented statements or to inform you about this. This document does not constitute an offer for the sale of securities. Securities of Berlin Hyp may not be offered or sold in the United States if they are not registered there or are not exempt from the obligation of registration according to the U.S. Securities Act 1993 in its current applicable version. 11