DGAP-News: DIC Asset AG prices first Green Bond of EUR 400 million - another building block to finance its growth

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Press Release

DIC Asset AG prices first Green Bond of EUR 400 million - another building block to finance its growth

• Green Bond has a 5-year maturity and a coupon rate of 2.25%
• Order book significantly oversubscribed
• Rating of the bond by S&P matches corporate level of DIC (BB+)
• Funds to be used for Green Buildings
• Further diversification of the financial structure and more flexibility in financing the future portfolio growth

Frankfurt am Main, 15 September 2021. DIC Asset AG ("DIC"), ISIN: DE000A1X3XX4, one of Germany's leading listed property companies, priced a senior unsecured fixed-rate green corporate bond with an aggregate par value of EUR 400,000,000.00 and a 5-year maturity (due September 2026) today, making it the first bond issuance of this type in the company's history. The bond's coupon rate is 2.25%. The bond was successfully marketed among institutional investors in Europe, having met with keen demand. The order book was significantly oversubscribed which lead to an upsizing of EUR 100 million, compared to the initial target volume. The net proceeds from the offering are earmarked for the attribution of existing, or the acquisition of additional, Green Buildings held in the balance sheet portfolio (Commercial Portfolio) of DIC.

"The fact that the funds thereby raised are earmarked for Green Buildings matches our corporate strategy and our recently published ESG road map, both of which project a growth trajectory for a green sub-portfolio on our balance sheets but also for our third-party business with institutional investors. We are planning to raise the share of Green Buildings from currently about 11% of the market value of the Commercial Portfolio to about 20% by year-end 2023," commented Sonja Wärntges, CEO of DIC.

"Today's bond marks the next milestone we are clearing as part of our success story in green finance. The Green Bond helps us to further diversify our financial structure and make it even more flexible," adds Patrick Weiden, Chief Capital Markets Officer (CCMO) of DIC.

The internationally renowned rating agency Standard & Poor's ("S&P") rated the bond in line with DIC's credit rating on the corporate level (BB+). The detailed rating is available on the homepage of S&P as well as in the Investor Relations section of DIC's own homepage.

Moreover, the green bond was prepared in line with DIC's Green Bond Framework ("GBF"), which sets out the parameters for placements of bonds with green use of proceeds. Sustainalytics, an established provider of ESG ratings, confirmed in a second-party opinion that the GBF of DIC meets the Green Bond Principles of ICMA (International Capital Market Association), and that the intended use of the bond proceeds towards the acquisition of Green Buildings complies with Sustainable Development Goals 9 and 11 defined by the United Nations.

The definition of Green Buildings as properties meeting the highest energy efficiency standards follows established market definitions and references minimum certification levels like "LEED Gold," "BREEAM Very Good" or "DGNB Gold", among others. In conjunction with today's bond issuance, DIC has pledged to report explicitly on the application of funds and the status of the green asset sub-portfolio in its future statements of account ("impact reporting"). The GBF of DIC has also been published on the company website (in the ESG section).

The bond has a denomination of EUR 100,000 each, and will trade on the Euro MTF market of the Luxembourg stock exchange. The transaction was managed by Goldman Sachs and HSBC as joint bookrunners. HSBC acted as sole green structuring advisor.

Once published, the final prospectus for the bond will be available at www.bourse.lu/home and in the Investor Relations section of the DIC homepage at
https://www.dic-asset.de/en/ir/corporate-bonds/

About DIC Asset AG:


DIC Asset AG is Germany's leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 234 assets with a combined market value of c. EUR 11.3 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.

In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.

IR/PR Contact DIC Asset AG:

Peer Schlinkmann

Leiter Investor Relations & Corporate Communications

Neue Mainzer Str. 20 * MainTor Primus

D-60311 Frankfurt am Main

T +49 69 9454858-1492
[email protected]

IMPORTANT NOTE:

The offering of the notes is being made by means of an offering memorandum. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the notes or any other security and shall not constitute an offer, solicitation or sale in the United States, Canada, Japan, Australia or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.

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The securities referred to herein are not being offered to the public in the United Kingdom within the meaning of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA") (the "UK Prospectus Regulation"). In the United Kingdom, this announcement is only being distributed to and is only directed at persons who are ''qualified investors'' within the meaning of the UK Prospectus Regulation who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) of the United Kingdom (as amended, the "Order"), (ii) are persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order or (iii) who are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 of the United Kingdom) (as amended, the "FSMA") in connection with the issue or sale of any notes may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons").

This announcement is directed only at (i) in the United Kingdom, persons who are Relevant Persons and (ii) in any member state of the EEA, persons who are qualified investors. Any investment or investment activity to which this announcement relates is available only to Relevant Persons in the United Kingdom and qualified investors in any member state of the EEA.

The notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the EEA. For these purposes, a "retail investor" means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of EU MiFID II; or (ii) a customer within the meaning of Directive (EU) 2016/97 (the "Insurance Distribution Directive"), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of EU MiFID II. Consequently, no key information document required by Regulation (EU) No. 1286/2014 (the "EU PRIIPs Regulation") for offering or selling the notes or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the notes or otherwise making them available to any retail investor in the EEA may be unlawful under the EU PRIIPS Regulation.

The notes are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the United Kingdom. For these purposes, a "retail investor" means a person who is one (or more) of: (i) a retail client, as defined in point (8) of Article 2 of Regulation (EU) No. 2017/565 as it forms part of domestic law by virtue of the EUWA; (ii) a customer within the meaning of the provisions of the FSMA and any rules or regulations made under the FSMA to implement the Insurance Distribution Directive, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No. 600/2014 as it forms part of domestic law by virtue of the EUWA. Consequently, no key information document required by Regulation (EU) No. 1286/2014 as it forms part of domestic law by virtue of the EUWA (the "UK PRIIPs Regulation") for offering or selling the notes or otherwise making them available to retail investors in the United Kingdom has been prepared and, therefore, offering or selling the notes or otherwise making them available to any retail investor in the United Kingdom may be unlawful under the UK PRIIPs Regulation.