Financing

According to the publication dated March 30, 2021, 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+.

Vonovia received an A- rating from the largest European rating agency Scope Group, which was most recently confirmed in a publication dated August 17, 2020.

A European medium-term notes program (EMTN program) was launched in the past 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. This program was transferred to Vonovia SE in the first quarter of 2021. The annual update of the prospectus for the EMTN program has already been carried out by Vonovia SE and was approved by the financial supervisory authority of the Grand Duchy of Luxembourg on March 11, 2021.

As of the reporting date of March 31, 2021, Vonovia had placed a total bond volume of € 16.9 billion, € 16.4 billion of which relates to the EMTN program.

Via its Dutch subsidiary Vonovia Finance B.V., Vonovia issued an EMTN bond of € 500.0 million that matures in January 2041 with effect from January 28, 2021. The bond will bear interest at a rate of 1.00% p.a.

Berlin Hyp provided Vonovia Finance B.V. with secured financing of € 200.0 million with a term of ten years, with the agreement signed in December 2020 and the funds disbursed in February 2021.

Deutsche Pfandbriefbank issued Vonovia SE with a promissory note loan of € 100.0 million with a term of two years in March 2021.

On March 24, 2021, Vonovia SE issued a green bond with a total volume of € 600.0 million. The bond will bear interest at a rate of 0.625% and have a term of ten years.

Liabilities amounting to around SEK 788.0 million (around € 78.0 million) were repaid as scheduled in the Swedish subgroup in the first quarter of 2021.

The debt maturity profile of Vonovia’s financing was as follows as of March 31, 2021:

Debt maturity profile on March 31, 2021 (face values)

in € million

In connection with the issue of unsecured bonds, 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.