Norton Rose Fulbright advises banking consortium on EUR 1.250 billion sustainability bond by the State of North Rhine-Westphalia

Global law firm Norton Rose Fulbright has advised a banking consortium consisting of Commerzbank Aktiengesellschaft, Coöperatieve Rabobank U.A., Crédit Agricole Corporate and Investment Bank (Technical Lead), Landesbank Hessen-Thüringen Girozentrale and Nordea Bank Abp in connection with the successful issue of a sustainability bond by the German State of North Rhine-Westphalia.

The sustainability bond with an issue volume of EUR 1.25 billion has a fixed rate of interest of 2.35 per cent and matures on 10 July 2030.

This is the first sustainability bond under the new Sustainability Bond Framework adopted by the State of North Rhine-Westphalia in June 2025. In accordance with the detailed provisions of the new framework, the State of North Rhine-Westphalia will use an amount equal to the net proceeds from the issue of the sustainability bond for the financing or refinancing of projects and activities that promote environmental or social purposes. The following categories are eligible as projects or activities: affordable basic infrastructure; access to essential services; affordable housing; employment generation, food security and sustainable food systems; socioeconomic advancement and empowerment; renewable energy; energy efficiency; pollution prevention and control; environmentally sustainable management of living natural resources and land use; clean transportation; sustainable water and wastewater management and climate change adaptation .

The sustainability bond was met with great interest among domestic and international investors and was oversubscribed more than six times.

Christoph Enderstein, who leads the debt capital markets team at Norton Rose Fulbright in Germany, commented: "We regularly advise on ESG bonds and are pleased to have been involved also with the successful issue of the first sustainability bond by the State of North Rhine-Westphalia under its new framework."

The Frankfurt team was led by partner Christoph Enderstein (Debt Capital Markets, Frankfurt). He was supported by counsel Dr Michael Born (Debt Capital Markets/Financial Services, Frankfurt), senior associate Florian Fraunhofer and associate Miriam Dustmann (both Debt Capital Markets, Frankfurt).

Norton Rose Fulbright's Debt Capital Markets team led by partner Christoph Enderstein in Frankfurt advises both investment banks and issuers in connection with national and international capital markets transactions in the areas of debt capital markets and structured finance, in particular on bonds, electronic securities, commercial paper, covered bonds (Pfandbriefe), structured bonds, securitized derivatives, hybrid instruments, registered bonds, promissory notes and debt issuance programs as well as the related regulatory aspects including sustainable financing issues.