Financing

According to the publication dated April 6, 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 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 March 31, 2020, Vonovia Finance B.V. had placed a total bond volume of € 13.8 billion, € 13.6 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, € 100 million with ING Bank, a branch of ING-DiBa AG, and € 100 million with Berliner Sparkasse, 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 debenture issued by Dutch subsidiary Vonovia Finance B.V.

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

Maturity Profile as of March 31, 2020 (Face Values)

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:

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