Deutsche Post AG issues first sustainability-linked bond

DUSS Terminal; Foto: Deutsche Post DHL/Oliver Lang

26/06/2023

PRESS RELEASE

Interest rate is linked to the achievement of the Group’s aspirational CO₂emissions reduction targets

The issuance underscores the company’s commitment towards permanently reducing its carbon footprint

Company aims to reduce greenhouse gas emissions to below 29 million tonnes of CO₂e by 2030

Bonn – On June 26, 2023, Deutsche Post AG successfully placed its first sustainability-linked bond with a nominal volume of €500 million and a term until 2033. The transaction has been carried out under the debt issuance program, established in 2012. The proceeds will primarily be used for general corporate purposes, including refinancing of existing financial liabilities. The bond has a fixed coupon of 3.375% per annum.

The interest rate of the bond is linked to certain key performance indicators (KPIs) as defined in the Group’s Sustainability-Linked Finance Framework published in November 2022. The Group is committed to reducing its absolute Scope 1 & 2 GHG emissions by 42% and its absolute Scope 3 GHG emissions by 25% until 2030 from a 2021 base year. In case the company fails to achieve one or both sustainability performance targets (SPTs), the interest rate will increase by 0.25 percentage points per annum from 2031 until maturity.

“I am delighted that Deutsche Post AG successfully placed its first sustainability-linked bond today. The transaction underpins our strong commitment to the green transformation of our Group and to the ambitious CO₂ emissions reduction targets that we have set ourselves”, said Chief Financial Officer Melanie Kreis.

Deutsche Post AG is rated “A2” by Moody’s with a stable outlook and “BBB+” by Fitch with a positive outlook. HSBC acted as global coordinator and SEB as ESG structuring advisor. Further joint bookrunners were Commerzbank and ING.

IMPORTANT NOTE

THE INFORMATION PROVIDED IN THIS NOTE IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN, OR IN ANY OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW.

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in the United States.

This announcement is a general information and not a prospectus. Investors should not purchase or subscribe for any securities referred to in this announcement except on the basis of information in the prospectus to be issued by Deutsche Post AG in connection with the offering of such securities. Copies of the prospectus will, following publication, be available free of charge from Deutsche Post AG at Charles-de-Gaulle-Straße 20, 53113 Bonn, Federal Republic of Germany.

This announcement has been prepared on the basis that any offer of securities in any Member State of the European Economic Area (EEA) will be made pursuant to the prospectus prepared by Deutsche Post AG in combination with the relevant final terms relating to such securities or pursuant to an exemption under Regulation (EU) 1129/2017 (the Prospectus Regulation) from the requirement to publish a prospectus for offers of securities.

Deutsche Post AG has not authorized and does not authorize, the making of any offer of securities in circumstances in which an obligation arises for Deutsche Post AG or any other person to publish a separate prospectus or a supplement to a prospectus for such offer.

This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

[This announcement contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Deutsche Post AG does not undertake any responsibility to update the forward-looking statements in this announcement.]