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DIC Asset AG places ESG linked promissory note of EUR 250 Million

DGAP-News: DIC Asset AG / Key word(s): Financing DIC Asset AG places ESG linked promissory note of EUR 250 Million 21.04.2021 / 07:30 The issuer is solely responsible for the content of this announcement. Press Release

DIC Asset AG places ESG linked promissory note of EUR 250 Million

• Successful placement of an unsecured promissory note ("Schuldschein")
• Average interest coupon of 1.78%
• 4.2-year average maturity
• ESG link underpins DIC Asset AG's sustainability strategy

Frankfurt am Main, 21 April 2021. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, concluded the issuance of the first ESG-linked promissory note ("Schuldschein") in the company's history in the amount of EUR 250 million. As a result of high demand, the transaction was oversubscribed several times at closing. The promissory note was placed with around 60 German and international institutional investors some of whom already manage their investor equity in accordance with ESG criteria. Its weighted average annual interest rate is 1.78%, the average maturity being 4.2 years and tranches ranging from three to ten years. The funds raised are used for further growth and the repayment of existing liabilities.

Due to the ESG link of the Schuldschein, the interest rate on the various tranches can change by 5 basis points. Decisive here is the green building share in the existing property portfolio (Commercial Portfolio). That share equals 11.6% as of 31 December 2020. It will be periodically reviewed in the years ahead: If the share rises to 20% or more at the end of 2023, the interest rate for subsequent tranches will decline by 5 basis points. The rate will remain unchanged if the share is between 15% and 20%. If it remains below 15%, the interest rate will step up by 5 basis points. Subsequent reviews will take place in the years 2026 and 2029.