DZ BANK concludes first green loan financing for HOCHTIEF

PPP project for energy-efficient refurbishment of properties owned by the Federal State of Hesse

HOCHTIEF has been awarded by the Bundesland (State of) Hesse with the energetic refurbishment of two properties of the Hesse police at the site Kassel and Mühlheim am Main. The project is realised under a PPP (public-private partnership) model with the State of Hesse. HOCHTIEF BePo Hessen GmbH is refurbishing and operating the properties and leasing them to the State of Hesse for 30 years from the start of the lease (01.01.2020). In May 2022, DZ BANK was able to provide a construction finance facility for the project via a "green loan". This represents a milestone for both HOCHTIEF and DZ BANK, as it is their first financing in the form of a "green loan" for sustainable, social infrastructure in Germany.

Construction finance meets Green Loan Principles

The project objective for the refurbishment of the two properties is to realise significant reduction in carbon footprint and energy use, taking into account measures for the retrofitting of the building fabric and functional optimisation. DZ BANK examined the transaction on the basis of the "Green Loan Principles" (GLP) and was able to classify the loan as a green loan as the relevant preconditions for a green loan have been met. Consequently, due to the so-called "Use of Proceeds Clause", the funds may only be used for the realisation of the sustainability requirements of this project.

This project with its comprehensive energy refurbishment impressively shows how all parties involved, be it the public sector, the private partner or DZ BANK, cooperate in the field of ESG* in a forward-looking way and can also make an important contribution to sustainability issues in the financial sector with the realisation of a green loan.

Claudia Luckhaus, Head of Project Finance, HOCHTIEF PPP Solutions GmbH

We have already successfully realised previous projects with HOCHTIEF in the PPP sector in recent years. We are pleased that DZ BANK was able to implement this PPP project for HOCHTIEF and the State of Hesse as an innovative green loan.

Katharina Stahl, DZ BANK

Focus on sustainability

DZ BANK has been pursuing a consistently oriented sustainability strategy for many years. A clear focus is on expanding its sustainable financing activities. Against this background, the project perfectly fits into DZ BANK's sustainability portfolio.

Mischa Zeiß, DZ BANK

As the relationship manager, I am particularly pleased about the successful transaction, as it underlines our capabilities in addition to the classic lending business. The structuring as sustainable project financing is innovative and addresses current affairs.

* Environmental, Social, Governance

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