Berlin Hyp's environmental, social and governance (ESG) mortgage covered bond dual tranche comprised of both a green and social bond, each of €500 million ($534 million), with the green bond tranche being used for loans to support energy-efficient green buildings.

In 2023, Berlin Hyp updated its green bond framework to better align its own green building criteria with the technical screening requirements of the EU taxonomy. According to its 2022 ESG Bond Report, two percent of the Green Finance Portfolio meets the EU taxonomy criteria, while 19% received a 'very good' rating from the green buildings certification provider BREEAM, and 79% satisfies strict energy threshold criteria.

"Since our inaugural Green Pfandbrief [a type of covered bond issued by German Pfandbrief Banks] in 2015, we have continuously aimed for the highest level of ambition in our sustainability endeavours, most recently by enhancing the alignment of our green building criteria with the EU taxonomy requirements," said Bodo Winkler-Viti, head of funding and investor relations at Berlin Hyp.

"We are grateful for the recognition Berlin Hyp receives in the market, reaffirming our consistent dedication to a greener future in real estate financing."

For the first time, Berlin Hyp's outstanding ESG benchmark-sized bonds outnumber its conventional bonds. The outstanding amount of green bonds reached €7.8 billion at the end of last year.

One Sustainable Debt Awards judge commended Berlin Hyp's "strong green and social framework linked to ambitious companywide sustainability goals, and the use of a dual issuance programme to highlight both". They also added that "overall, it continues to be a strong green, social bond programme".

"Berlin Hyp continues on its already renowned market status, combining different labels in one deal and, therefore, forcing market and investor awareness to developments they might otherwise have missed," added another.