Commerzbank AG completes €750 million green tier 2 bond offering

Published 26/06/2025, 09:10
Commerzbank AG completes €750 million green tier 2 bond offering

FRANKFURT - Commerzbank AG (OTC:CRZBY) announced the completion of a €750 million green tier 2 subordinated notes offering with no stabilization measures undertaken during the process, according to a post-stabilization notice issued Thursday.

The notes carry a 4.125% fixed-to-fixed resettable rate and are scheduled to mature in 2037, with a call option after seven years (12NC7 structure). The securities were issued under Commerzbank (ETR:CBKG)’s Medium Term Note program dated May 23, 2025.

The green bond issuance, identified by ISIN DE000CZ45ZY0, was managed by a consortium of financial institutions including Commerzbank AG as stabilization coordinator, along with Banco Santander (BME:SAN) S.A., Goldman Sachs Bank Europe SE, Lloyds (LON:LLOY) Bank Corporate Markets, The Toronto Dominion Bank (NYSE:TD), and UBS AG London Branch serving as stabilization managers.

The bank stated in its press release that no market stabilization activities, as defined under Article 3.2(d) of the EU Market Abuse Regulation 596/2014, were conducted by the appointed stabilization managers during the offering period.

Tier 2 capital instruments help financial institutions strengthen their regulatory capital position under banking regulations, while the green designation indicates the proceeds will be allocated toward environmentally sustainable projects.

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