Annual Report 2020


According to the publication dated July 22, 2020, Vonovia’s credit rating as awarded by the agency Standard & Poor’s is unchanged at BBB+ with a stable outlook for the long-term corporate credit rating and A-2 for the short-term corporate credit rating. At the same time, the credit rating for the issued and unsecured bonds is BBB+.

On December 13, 2019, Vonovia received an A- rating from the largest European rating agency Scope Group for the first time, a rating that was most recently confirmed in a publication dated August 17, 2020.

A European medium-term notes program (EMTN program) has been launched for the Group via Vonovia Finance B.V., allowing funds to be raised quickly at any time using bond issues, without any major administrative outlay. The prospectus for the EMTN program has to be updated annually and approved by the financial supervisory authority of the Grand Duchy of Luxembourg (CSSF).

As of the reporting date of December 31, 2020, Vonovia Finance B.V. had placed a total bond volume of € 15.5 billion, € 15.3 billion of which relates to the EMTN program.

Via its Dutch subsidiary Vonovia Finance B.V., Vonovia increased an EMTN bond of € 500 million that runs until March 2026 by € 200 million with effect from January 30, 2020.

Vonovia Finance B.V. took out secured financing for Vonovia of over € 300 million with Landesbank Baden-Württemberg in February 2020 as well as over € 100 million with ING Bank, a branch of ING-DiBa AG, and over € 100 million with Berliner Sparkasse in March 2020, respectively, each with a term of ten years.

On February 28, 2020, € 300 million was repaid under the Commercial Paper Program that the Dutch subsidiary Vonovia Finance B.V. had taken out for the Vonovia Group. This means that the Commercial Paper Program has been repaid in full.

On March 30, 2020, Vonovia repaid the remaining capital of € 300.6 million on a bond issued by Dutch subsidiary Vonovia Finance B.V.

Vonovia placed two bonds with a total volume of € 1 billion on March 31, 2020. The new bonds will bear interest at an average rate of 1.9% and have a term of four and ten years, respectively.

Secured financing with remaining capital of € 290 million was repaid to a consortium including Berlin Hyp, Berliner Sparkasse and Landesbank Baden-Württemberg on June 30, 2020, as scheduled.

Vonovia Finance B.V. placed two bonds with a total volume of € 1.5 billion on July 2, 2020. With terms of six and ten years, respectively, the bonds bear interest at an average rate of 0.8%. The payout date was July 9, 2020.

Berlin Hyp provides Vonovia Finance B.V. with secured financing of € 184 million with a term of ten years that was disbursed in July 2020.

Secured financing with a volume of around SEK 13.7 billion (approximately € 1.3 billion) was repaid in the Swedish subgroup in August and September.

In November 2020, € 200 million was disbursed as part of a secured financing arrangement provided by Commerzbank AG with a term of seven years.

On December 15, 2020, Vonovia repaid a bond of € 751.7 million issued by Dutch subsidiary Vonovia Finance B.V. as scheduled.

The debt maturity profile of Vonovia’s financing was as follows as of December 31, 2020:

Maturity Profile

Maturity Profile (Bar chart)

In connection with the issue of unsecured bonds by Vonovia Finance B.V., Vonovia has undertaken to comply with the following standard market covenants:

  • Limitations on incurrence of financial indebtedness
  • Maintenance of consolidated coverage ratio
  • Maintenance of total unencumbered assets

The existing structured and secured financing arrangements also require adherence to certain standard market covenants. Any failure to meet the agreed financial covenants could have a negative effect on the liquidity status.

The LTV (loan to value) is as follows as of the reporting date:

in € million

Dec. 31, 2019

Dec. 31, 2020

Change in %





Non-derivative financial liabilities




Foreign exchange rate effects




Cash and cash equivalents




Net debt




Sales receivables



Adjusted net debt








Fair value of the real estate portfolio




Shares in other real estate companies




Adjusted fair value of the real estate portfolio











–3.7 pp




The financial covenants have been fulfilled as of the reporting date.

in € million

Dec. 31, 2019*

Dec. 31, 2020

Change in %





Non-derivative financial liabilities




Total assets








LTV bond covenants



–3.1 pp

* Adjusted (see note [A2] Adjustment to Prior-year Figures).

Requirements specified in loan agreements or bond conditions containing future obligations of the borrower or the bond obligor to meet specific requirements or to refrain from undertaking certain activities.
Classification of debtors or securities with regard to their creditworthiness or credit quality according to credit ratings. The classification is generally performed by rating agencies.