DGAP-News: Vonovia SE: Vonovia issues green bonds and for the first time social bonds

Vonovia issues green bonds and for the first time social bonds worth €2.5 billion

- First social bonds for rent-controlled and low-barrier housing with terms of around 4 and 6 years

- First green bond issued by a property company under new EU taxonomy with a term of 10 years

- Philip Grosse: "This demonstrates our social responsibility and our strategy of sustainability. Rising energy prices show how important it is to reduce the cost of heating for tenants."

Bochum, 22 March 2022 - On 21 March, Vonovia SE ("Vonovia") has issued its first two social bonds with terms of 3.85 and 6.25 years as well as its first 10-year green bond under the new EU taxonomy. This is a premiere in the property industry. The bonds worth €2.5 billion have a coupon of 1.875% and were oversubscribed by a multiple of 4.7.

"The bonds demonstrate our social responsibility and our strategy of sustainability. This is precisely what investors expect from companies today," says Philip Grosse, CFO of Vonovia. "In turn, we as a company benefit from social bonds and green bonds as an opportunity to expand our investor base." Just recently, in February 2022, Vonovia adjusted its sustainable financing to the new EU standards (EU taxonomy) and added social components.

The two social bonds will be used for the financing of social projects. This includes housing set aside for holders of state subsidy entitlements and thus low-income households. But it also includes privately financed flats in Berlin as a way of providing access to affordable housing, with rental fees that are at least 15% below the officially determined average local reference rent. Furthermore, the funds from social bonds will be used for low-barrier housing and for modernization that will cater more effectively for the needs of an ageing society.

Vonovia's sustainability strategy is based on the three ESG fields of action: the environment, social responsibility and governance. For example, the company has committed itself to a binding climate roadmap and a nearly climate-neutral building portfolio by 2045. It has also introduced a Sustainability Performance Index which transparently shows its annual progress.

The 10-year green bond provides Vonovia with additional cash, which the company also wants to use for refinancing sustainable projects in Germany, Austria and Sweden. This includes investments in new builds and upgrading existing buildings to an energy efficiency class of at least B (in Austria: at least A). Above all, Vonovia is promoting renewable energies, such as the installation of solar panels.

"We still have buildings that go back to the 1950s and 60s and which have not been modernized. This is why we've been working steadily since 2015 on a reduction of the carbon footprint of our buildings through energy upgrades. Today's rising energy prices show how important it is to reduce the cost of heating for tenants," says Philip Grosse. "We also ensure high standards in energy efficiency in new builds, and so we often give preference to wood as a building material."

The Sustainable Finance Framework is available on Vonovia's website:

https://investoren.vonovia.de/en/creditor-relations/sustainable-finance/

2022 Financial Calendar:

29 April 2022: Annual General Meeting - online
5 May 2022: Interim Statement for the First Three Months of 2022
3 August 2022: Interim Statement for the First Half of 2022
4 November 2022: Interim Statement for the First Nine Months of 2022

About Vonovia


Vonovia SE is Europe's leading private residential real estate company. Vonovia currently owns around 565,000 residential units in all attractive cities and regions in Germany, Sweden and Austria. It also manages around 71,200 apartments. Its portfolio is worth approximately € 97.8 billion. As a modern service provider, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and livable homes is a prerequisite for the company's successful development. Therefore, Vonovia makes long-term investments in the maintenance, modernization and senior-friendly conversion of its properties. The company is also creating more and more new apartments by realizing infill developments and adding to existing buildings.

The company, which is based in Bochum, has been listed on the stock exchange since 2013. Since September 2015 Vonovia has been a constituent in the DAX 30 (today DAX 40) and since September 2020 in the EURO STOXX 50. Vonovia SE is also a constituent of additional national and international indices, including DAX 50 ESG, Dow Jones Sustainability Index Europe, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, STOXX Europe ESG Leaders 50, FTSE EPRA/NAREIT Developed Europe, and GPR 250 World. Vonovia has a workforce of approximately 16,000 employees.

Additional Information:

Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange

ISIN: DE000A1ML7J1

WKN: A1ML7J

Common code: 094567408

Registered headquarters of Vonovia SE: Bochum, Germany, Bochum Local Court, HRB 16879

Business address of Vonovia SE: Universitaetsstrasse 133, 44803 Bochum, Germany

This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.