A company of LBBW
Our Financing Spectrum
We offer individual solutions for real estate financing in all common asset classes, either as individual properties or in portfolios and are thus ideally positioned for large-volume and complex financing. In addition to traditional mortgage loans, we offer guarantees, rent deposit management, building contractor and development financing and much more.
We are particularly committed to sustainable real estate and, to this end, we offer various different design options for our Green Loans.
Sustainable Finance
Financial institutions have a key role to play in the transformation of business and industry. More specifically, such institutions are the entities that finance the investments that companies and governments need to make, and they also integrate ESG-related opportunities and risks into their evaluations of investments and financing plans. In addition, they support investors by providing them with information on sustainability approaches and strategies. Berlin Hyp seeks to play a major role in efforts to expand the integration of sustainability criteria into real estate financing and investment products.
Social loan
Establishing the conditions needed for environmental and social sustainability is the global challenge of our time – and one that we can only overcome together. Berlin Hyp’s comprehensive ESG strategy takes into account environmental, economic and social aspects relating to the Bank’s core business. Berlin Hyp is aware of the growing relevance of social factors in the real estate industry and seeks to utilise targeted incentives for promoting affordable housing in order to support low-income households and strengthen social cohesion.
Energy efficiency loan
Our Green Loan portfolio currently includes the energy efficiency loan, among others. The loans are secured by energy-efficient and environmentally friendly buildings and contribute to the Sustainable Development Goals SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action). The eligibility criteria for energy efficiency loans are defined in our Sustainable Finance Framework. This framework provides an overarching approach to classifying our sustainable financing products on a holistic scale.
Taxonomy loan
Our Green Loan portfolio currently includes the taxonomy loan, among others. This is used to finance investments that are based on the eligibility criteria for environmentally sustainable economic activities outlined in the EU Taxonomy Regulation and it contributes to the Sustainable Development Goals SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action).
The eligibility criteria for taxonomy loans, which aim to make a significant contribution to protecting the climate, and the corresponding DNSH criteria (“do no significant harm“) as well as the minimum social requirements (minimum safeguards) are defined in the Sustainable Finance Framework. This framework provides an overarching approach to classifying our sustainable financing products on a holistic scale.
Sustainable financing and credit products support the transformation
Sustainability criteria can be taken into account as early as the design and planning stage when new properties are built. The real challenge in terms of sustainability lies in upgrading existing building stocks. Making an existing property more sustainable and optimising its energy performance retroactively is a complex undertaking, both in a technical sense and in terms of financing. At the same time, the complete modernisation of existing buildings is one of the most effective climate protection instruments that can be used in the real estate sector.
Berlin Hyp supports its customers and business partners who wish to make their properties more sustainable. For example, we offer our transformation loan.
Financing the green transformation: our Transformationskredit (transformation loan)
The aim of the transformation loan is to improve the energy efficiency of a building, with a focus on how effective the energy-related refurbishments are for the environment.
The distinction between a Berlin Hyp transformation loan and a taxonomy-compliant transformation loan depends on the extent of the improvement in energy performance, and thus only indirectly on the final energy performance of the building after refurbishments have been completed.
Our ImmoSchuldschein -
Financing with Land Charges
The ImmoSchuldschein is a combination of a classic borrower’s note and a safeguard via land charges on real estate, making it an interesting financing product for you as well.
The typical issuer of our ImmoSchuldschein is a well-positioned real estate business in Germany with a real estate portfolio limited to Germany. The focus should be on portfolio management. Excellent creditworthiness is required. Berlin Hyp will retain a stake of more than 50 percent in the loan for the entire term, hold the entire subordination and take over all servicing.
The ImmoSchuldschein also gives you access to the financing potential of the German savings banks.
Pioneer for green finance and investments
Berlin Hyp invented the “Green Pfandbrief” and is today one of the most active issuers of bonds that are firmly linked to sustainability criteria.
Since its first Green Bond issue in 2015, the Bank has successfully placed Green Bonds with a total volume of approximately €6 billion on the market.
In 2021, Berlin Hyp became the first commercial bank in the world to issue a Sustainability-Linked Bond (SLB), thus once again proving itself to be a pioneer in promoting the use of sustainability criteria as a firm component of real estate financing products.
Berlin Hyp for the first time issues a Social Pfandbrief, being the first European bank to issue bonds in three different ESG categories.
Customer Derivatives
In the case of variable-rate loans, we offer you, our customers, a wide range of interest hedging options.
By concluding a customer derivative, we combine the advantages of a loan based on the reference interest rate with the security of your future interest charges.
Our capital market experts would be happy to assist you!
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