13.04.2022

Luther advises first mid-market real estate green bond

Frankfurt am Main – Luther Rechtsanwaltsgesellschaft was able to further expand its track record in corporate bonds. Luther advised the owner-managed project developer AOC | DIE STADTENTWICKLER from Magdeburg on the debut issue of a green bond. The Luther team structured the terms and conditions of the bond, prepared the securities prospectus and assisted the issuer as issuers' counsel in all legal matters.

The AOC Green Bond (ISIN: DE000A3MQBD5) was included in trading on the Open Market of the Frankfurt Stock Exchange in the Quotation Board trading segment. It bears interest at 7.50 % p.a. over a term of five years and has a volume of up to EUR 30 million. The bond is subject to financial covenants and the bond terms provide for compliance with transparency criteria. The Magdeburg-based company intends to use the profits to grow further and finance upcoming green real estate projects.

"Our track record in corporate bonds is growing. This bond could become a model for many bonds to come. It is the first ‘green’ medium-sized real estate bond with a corresponding ESG rating. We have closely coordinated the green bond requirements with the financial regulator. The bond is also equipped with a large number of financial covenants and also provides for compliance with transparency criteria, which for the first time also include ESG reporting," said Ingo Wegerich, partner in charge at Luther.

In June 2021, Luther Rechtsanwaltsgesellschaft had already advised SV Werder Bremen and in March 2022 SUNfarming GmbH on the issue of a corporate bond.

In the real estate sector in particular, Luther has a great track record and well-known references in corporate bonds and has, for example, advised Euroboden GmbH on its real estate bonds – most recently on a bond with a volume of EUR 75 million.

Till Schwerdtfeger, Managing Director of AOC | DIE STADTENTWICKLER GmbH: "I would like to thank Ingo Wegerich and his team at Luther for their professional and reliable support in a complex process, which also made a debut issuer feel comfortable at all times."

About AOC:

AOC | DIE STADTENTWICKLER GmbH is an owner-managed project developer specialising in the conception, planning and realisation of high-quality residential and commercial properties (office and retail). The regional focus is on the middle and upper centres of the new federal states including Berlin. AOC has office locations in Magdeburg, Leipzig, Dresden and Erfurt and handles the entire value chain of project development. Founded in 2004, AOC has successfully invested more than 700 million euros in real estate projects to date and currently has a project pipeline of around one billion euros.

On behalf of AOC:

Luther, Capital Markets, Banking & Finance: Ingo Wegerich (Partner), Volkan Top (Associate)