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DKB Green Bond – Use of Solar Projects
2 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Termsheet „DKB Green Bond“
Details
Seniority Senior unsecured
Tenor 5 years
Size EUR 500m (no grow)
Rating A3
Maturity 08.06.2021
Type of Bond (based on Green Bond Principles) Green use of proceeds bond
Use of proceeds Solar and wind projects in Germany, onshore
Second Party Opinion oekom research AG
Label Climate Bond Initiative
Third Party Assurance KPMG
Documentation German base prospectus
ISIN DE000GRN0008
3 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Deutsche Kreditbank (DKB) at a glance
A3 Senior unsecured Rating by Moody‘s
Industry leader (B-) in Sustainability at oekom research
Founded 1990 100%-owned subsidiary of BayernLB
EUR 73bn total assets
among the top 25 banks
in Germany
EUR 225m net profit in 2015
> 3 million customers
Municipalities, business
and retail customers
EUR 62bn loans to customers in Germany
4 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Cash reserves
1%
Loans to FI
7%
Other assets
1%
Fin. Investm.
7%
Our loan book: 99 % Germany, focus on sustainable sectors
Housing: EUR 19bn
Health and care: EUR 2.5bn
Local authorities, education,
research: EUR 9bn
Private households: EUR 12bn
Environmental technology: EUR 7bn
Food and agriculture: EUR 3bn
Energy and supply: EUR 5.5bn
Other corporate customers: EUR 3bn
Retail
17%
Corporates
18%
Infrastructure
49%
Green Bond rationale:
Green Bonds are a logical consequence of
the business model of DKB
Green Bonds will become an important
source of future funding
5 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Wind Solar Biogas
Basis of Green Bond: Renewable energy portfolio of DKB
Core business of DKB since 1996
Project-based only, onshore only
100% Germany
Total volume appr. EUR 9bn
Highly diversified by size
(EU
Rm
)
6 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
4,63,2
1,1
Wind Photovoltaik Biogas
Green Bond Programme Use of proceeds: Renewable energy loans (solar and wind power)
Renewable Energy portfolio (EURbn) Green Bond
Pool New loans originated 07/14 – 06/15 (EURm)
-50%
-14%
EUR 9bn
1.721
857 736
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2.000
New business wind and solarenergy finance (07/14 -
06/15)
Less transmitted loans(agencies)
After selection criteria
7 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Green Bond Programme Project evaluation and selection
Wind power projects Green Bond Pool
66 loans
Average loan volume: EUR 5m
Average loan term : 10.5 years
Solar power projects
115 loans
Average loan volume: EUR 3.5m
Average loan term: 15 years
Selection criteria:
Only core customer loans
Only project-based business
Onshore only
New originated since 07/2014
Only selected legal forms
Minimum loan volume per project:
EUR 500,000
Internal minimum rating
Green Bond Framework
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Approval procedure in Germany
Approval procedure
All loans are based on compensations according to
the Renewable Energy Law in Germany (EEG)
Particular requirements must be met (among others):
- Legally binding land use plan in place for
- ecologically worthless surface:
a) which is sealed (e. g. industrial areas)
b) of no value for other use (e. g. areas alongside
highways)
c) rededicated area (e. g. former military training
area)
Legally binding land use plan
Impact analysis Environmental
report Public interest
Environmental assessment Intervention in nature and landscape
Biodiversity
Soil protection
Local authorities Nature protection
Monument conservation
Building authority
Community dialogue Public notice
Consideration of legitimate complaints
and interests
De-construction, Recycling
Land development plan
Requirements for solar energy projects
9 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Example Solar power plant in the industrial area of Lauta (Free State of Saxonia)
Land-development plan (Lauta) Legally-binding land use plan
Former surface mining terrain and
area of aluminium plant
Surface sealed for 90 years
Despite rehabilitation measures still
polluted area
Detailed environmental impact report
considering landscape, biodiversity,
geology etc.
Solar power plant
10 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Green Bond Programme Impact Reporting
Environmental impact Number Nominal capacity
in kW
Predicted energy
production in kWh (p.a.)
CO2 avoidance
in tons (p.a.)
Equivalent number of 2-person
households supplied (p.a.)
Wind projects 66 461.630 1.063.615.839 612.643 308.384
Solar projects 115 372.366 342.574.676 197.323 99.326
total 181 833.996 1.406.190.515 809.966 407.710
DKB will provide a detailed reporting on a yearly basis
The reporting will be published on DKB´s website and will consist of the following:
- Nominal volume of the loans: thereof wind projects / solar projects
- Number of assets in the pool: thereof wind projects / solar projects
- Environmental indicators: Nominal output of the financed plants
Energy performance p.a.
Avoidance of CO2 emissions p.a.
Equivalent 2-person-households (energy need)
- Geographical segmentation
- Progress of plants under construction (under construction/operating)
- Number and volume of substituted assets since last reporting
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Certificates and feedback
Climate Bond Label
Climate Bond Initiative (CBI)
Third Party Assurance
By KPMG within impact reporting
Second party opinion
Green focus of investors dependent on country and regional
green bond know-how (f.i. in Germany less interest in green
issues than in France or Netherlands)
The simpler the structure of the bond the better
Reporting becomes more important (e.g. how much CO2 is
saved per 1 million EUR invested)
Investor feedback
Internal feedback
Green bond is a positive story which activates the people
Project which involves the whole or many parts of the
company
Needs management support
Good story to talk about (press, marketing)
12 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Contacts
Armin Hermann Head of Capital Markets, Treasury
+49-30-12030-2920
Uwe Jurkschat Capital Markets, Treasury
+49-30-12030-2924
Deutsche Kreditbank AG Taubenstr. 7-9
10117 Berlin, Germany
www.dkb.de
Bloomberg DKRE <GO>
13 I DKB Green Bond – solar approach I July 2016 I CBI Webinar
Disclaimer
The information in this presentation constitutes neither an offer nor an invitation to subscribe to or purchase securities. It does not
represent a recommendation to buy, sell or hold any securities. The information in this presentation is solely intended for
informational purposes and does not serve as a basis for any kind of obligation, contractual or otherwise. The presentation may not
be copied in whole or in part, distributed, forwarded or sent directly or indirectly by any means to a third party without prior written
consent.
Statements in this presentation represent solely the opinion of Deutsche Kreditbank AG. All the information contained in this
presentation has been compiled with care. However, Deutsche Kreditbank AG does not expressly or silently guarantee the
accuracy, completeness or suitability of the information in this presentation for any particular purpose. Deutsche Kreditbank AG
assumes no direct or indirect liability from this presentation. Furthermore, investors should bear in mind that statements concerning
past performance do not indicate or represent a guarantee of future performance or returns. Deutsche Kreditbank is under no
obligation to update or regularly review the information in this presentation.
This presentation may be subject to legal restrictions in some jurisdictions. All persons in possession of this presentation are
explicitly advised to personally inquire about any restrictions that may apply and to comply with them. The information may not be
used in foreign jurisdictions without permission.
