HOWOGE successfully issues first social bond in the amount of EUR 300 million

NOT FOR PUBLICATION, DISTRIBUTION OR FORWARDING, EITHER DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL.

HOWOGE successfully issues first social bond in the amount of EUR 300 million

Berlin, 30^th May 2024. HOWOGE Wohnungsbaugesellschaft mbH issued its first social bond yesterday with a volume of EUR 300 million. The social bond with a term of six years matures on 5^th June 2030. The coupon is 3.875 per cent.

The bond proceeds will be used to finance investments that meet the criteria of HOWOGE's Social Finance Framework. This includes, for example, the most recent portfolio acquisition of 4,500 apartments, including land reserves, which the municipal company made in April of this year. 

Thanks to the growing demand following the announcement of the issue, HOWOGE was able to set the final price at MS (Mid Swap) +95 basis points and thus 30 basis points inside the initial pricing guidance. This strong result is underlined by a minimal new issuing premium of five basis points and the fact that the bond was around 3.7 times oversubscribed.

Katharina Greis, HOWOGE managing director: ‘With the successful placement of the bond, we are once again demonstrating our excellent access to the capital markets. This unsecured financing underlines the diversification of our financing sources and the optimisation of our financing costs. At the same time, the inclusion of the social component in a bond is in line with HOWOGE's primary objective of creating and maintaining affordable housing.’

About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is one of the six publicly owned housing companies belonging to the State of Berlin. With a housing portfolio of approximately 76,400 apartments (as of 31^st December 2023), the company is one of the largest landlords in Germany. In the medium to long term, HOWOGE intends to expand its housing portfolio, particularly through new builds, to around 100,000 apartments. As part of the Berlin school building campaign, HOWOGE is also taking on for the State of Berlin the refurbishment of existing schools and the building of new ones.

“Designing a liveable Berlin of tomorrow – more than just a place to live”

Important notice:

This publication is neither an offer to sell nor a solicitation to buy securities.

To the extent that this announcement contains forward-looking statements, such statements do not represent facts and are characterised by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of HOWOGE Wohnungsbaugesellschaft mbH and are based on current plans, estimates and forecasts which HOWOGE Wohnungsbaugesellschaft mbH has made to the best of its knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by HOWOGE Wohnungsbaugesellschaft mbH. It should be kept in mind that the actual events or developments may differ materially from those contained in or expressed by such forward-looking statements.