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- investment grade rating from the largest European rating agency Scope, which was most recently confirmed in a publication dated June 14, 2021.

In addition, Vonovia was awarded an A3 long-term issuer rating with a stable outlook by the rating agency Moody’s for the first time on May 31, 2021.

Vonovia SE has launched an EMTN program (European medium-term notes program). This program, which was originally launched via Vonovia Finance B.V., allows funds to be raised quickly at any time, without any major administrative outlay, using bond issues. The prospectus for the € 30 billion program, which was most recently supplemented on June 3, 2021, is to be updated annually and approved by the financial supervisory authority of the Grand Duchy of Luxembourg (CSSF).

As of the reporting date of September 30, 2021, Vonovia had placed a total bond volume of € 25.6 billion, € 25.4 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 runs until 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.

On August 5, 2021, Morgan Stanley, Société Générale and Bank of America provided Vonovia SE with bridge financing with a term of up to two years as part of the acquisition of Deutsche Wohnen, the value of which most recently still came to around € 17,000.0 million. This bridge financing was syndicated by the aforementioned banks.

Vonovia SE placed bonds with a total volume of € 4,000.0 million on June 16, 2021. The various tranches have terms of 3, 6, 8, 12 and 20 years and an average annual interest rate of 0.6875%.

Vonovia SE placed bonds with a total volume of € 5,000.0 million on September 1, 2021. They have terms of 2, 4.25, 7, 11 and 30 years and an average annual interest rate of 0.49%.

Liabilities amounting to around SEK 2,520.0 million (around € 250.0 million) were repaid as scheduled in the Swedish subgroup in the period from the first to the third quarter of 2021.

The debt maturity profile of Vonovia’s financing was as follows as of September 30, 2021:

Debt Maturity Profile on September 30, 2021 (face values)

graphic

In connection with the issue of unsecured bonds, Vonovia has undertaken to comply with the following standard market covenants:

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, 2020

Sep. 30, 2021

Change in %

Non-derivative financial liabilities

24,084.7

46,179.9

91.7

Foreign exchange rate effects

-18.9

-31.6

67.2

Cash and cash equivalents

-613.3

-3,173.2

>100

Net debt

23,452.5

42,975.1

83.2

Sales receivables

-122.3

-60.1

-50.9

Adjusted net debt

23,330.2

42,915.0

83.9

Fair value of the real estate portfolio

58,910.7

95,378.7

61.9

Loans to companies holding immovable property and land

950.4

Shares in other real estate companies

324.8

700.4

>100

Adjusted fair value of the real estate portfolio

59,235.5

97,029.5

63.8

LTV

39.4%

44.2%

4.8 pp

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

in € million

Dec. 31, 2020

Sep. 30, 2021

Change in %

Non-derivative financial liabilities

24,084.7

46,179.9

91.7

Total assets

62,417.4

108,656.9

74.1

LTV bond covenants

38.6%

42.5%

3.9 pp