German team advises banking syndicate on issue of Deutsche Bank's inaugural social bond with an aggregate principal amount of EUR 500 million

Global law firm Norton Rose Fulbright has advised a syndicate of international banks comprising Deutsche Bank Aktiengesellschaft, ABN AMRO Bank N.V., ING Bank N.V., Natixis, NatWest Markets N.V. and Skandinaviska Enskilda Banken AB (publ) in connection with the successful issue of Deutsche Bank Aktiengesellschaft's first social bond (ISIN: DE000A383J95) with an aggregate principal amount of EUR 500 million.

Social bonds are bonds whose issue proceeds are used in part or in full to (re-)finance social projects. The issue proceeds from social bonds can be used to finance infrastructure projects or the creation and preservation of jobs, for example. The EUR 500 million 4NC3 senior non-preferred social benchmark bond issued by Deutsche Bank supports an asset pool comprising affordable housing for low-income families and senior care homes, providing essential services to elderly and/or vulnerable people.

The callable fixed to floating rate bond was admitted to trading on the regulated market of the Luxembourg Stock Exchange. The bond will mature in July 2028 and pay an annual fixed coupon of 4.00 per cent. per annum until July 2027, as of which, subject to a call option of the issuer, the coupon to be paid quarterly until maturity will be reset on the basis of the then prevailing 3-months-EURIBOR rate plus a margin of 0.95 per cent.

With the issuance of green and now social financing instruments, Deutsche Bank aims to contribute to the further advancement of the sustainable finance market and raise funds that match those it lends to its clients to achieve their goals in transforming their business in a climate-friendly and socially sustainable manner.

The banking syndicate was advised by a Norton Rose Fulbright team led by Frankfurt partner Christoph Enderstein. Enderstein, who is responsible for debt capital markets at Norton Rose Fulbright in Germany, commented: "We have advised on several bonds with innovative structures issued by Deutsche Bank Aktiengesellschaft in recent years and are delighted that we have now also been involved in the successful issue of the first social bond by Deutsche Bank Aktiengesellschaft."

The Frankfurt team of Norton Rose Fulbright also included Counsel Dr. Michael Born and Associates Quynh-Anh Nguyen-Xuan and Miriam Dustmann (all debt capital markets, Frankfurt).

In-house advice at Deutsche Bank was provided by Dr. Ute Münstermann.

Norton Rose Fulbright's Frankfurt debt capital markets team advises both investment banks and issuers in connection with national and international capital market transactions in the areas of debt capital markets and structured finance, in particular on bonds, commercial paper, covered bonds, structured bonds, securitized derivatives, hybrid instruments, registered notes, Schuldschein loans and issuance programmes as well as related regulatory issues including sustainable finance matters.