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White & Case Advises DIC Asset AG on First Issue of Sustainability-Linked Promissory Notes

Global law firm White & Case LLP has advised DIC Asset AG on its issuance of sustainability-linked promissory notes (Schuldscheindarlehen) with a volume of €250 million.

The weighted average annual interest rate of the notes is 1.78%, the average maturity is 4.2 years and the tranches range from three to ten years.

Due to the ESG linked mechanism of the promissory notes (Schuldscheindarlehen), the interest rate on the various tranches can change by five basis points. Decisive to this is the green building share in the existing property portfolio (Commercial Portfolio). If this share rises to 20% or more on the pre-determined observation dates, the interest rate for subsequent interest periods will decline by five basis points. The rate will remain unchanged if the share is between 15% and 20%. If it remains below 15%, the interest rate will step up by five basis points.

To qualify as a green building, a given property has to meet certain standards in terms of energy consumption, energy used, and building materials. Accordingly, the company's buildings should be as energy-efficient as possible. To this end, DIC Asset AG is adopting the specifications of the German Energy Saving Ordinance (EnEV) and the internationally established LEED, DGNB, BREEAM and ENERGY STAR standards for sustainable building certifications.

The White & Case team in Frankfurt which advised on the transaction included partner Karsten Wöckener, local partner Cristina Freudenberger and associate Florian Fraunhofer.

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