Financing

According to the publication dated March 21, 2023, Vonovia’s credit rating as awarded by the agency Standard & Poor’s is unchanged at BBB+ with a stable outlook for the long-term issuer credit rating and A-2 for the short-term issuer credit rating. At the same time, the credit rating for the issued and unsecured bonds is BBB+.

Furthermore, in an announcement dated November 2, 2022, Vonovia was awarded a rating of Baa1 with a stable outlook by the rating agency Moody’s.

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 € 40 billion program, which was published on March 24, 2023, 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 March 31, 2023, Vonovia had placed a total bond volume of € 26.0 billion, € 25.7 billion of which relates to the EMTN program. Deutsche Wohnen bonds worth a further € 1.8 billion were also assumed.

In January 2023, Vonovia implemented an open market repurchase to buy back bonds maturing in 2028, 2029 and 2033. € 53.6 million was bought back early within this context.

Deutsche Wohnen repaid secured financing in the amount of € 281.8 million as scheduled in March 2023.

Vonovia repaid promissory note loans of € 120.0 million as scheduled in March 2023.

On March 16, 2023, Vonovia took out secured financing with Berlin Hyp in the amount of € 550.0 million with a maturity of ten years, disbursement of which is scheduled for April 2023.

The debt maturity profile of Vonovia’s financing was as follows as of March 31, 2023:

Debt Maturity Profile on March 31, 2023 (Face Values)

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.

On the reporting date, our key debt indicators were as follows:

The financial covenants were fulfilled on the reporting date.