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.

To qualify as a green building, a given property has to meet certain standards in terms of energy consumption, energy used, and building materials. Accordingly, the company's buildings should be as energy-efficient as possible. To this end, DIC Asset AG is adopting the specifications of the German Energy Saving Ordinance (EnEV) and the internationally established LEED, DGNB, BREEAM and ENERGY STAR standards for sustainable building certifications.

"With the ESG-linked Schuldschein, we are once again assuming a pioneering role within our industry, which wants to step up its contribution to Germany's national climate targets. By linking the interest rates to reliably measurable sustainability ratios, we are defining concrete guidelines for our investment and refurbishment activities. A positive contribution to climate protection and simultaneously a lower finance expense for us -clearly a win-win arrangement," commented Sonja Wärntges, CEO of DIC Asset AG.

The banks facilitating the transaction were Bayerische Landesbank (BayernLB), Landesbank Baden-Württemberg (LBBW) and ING Deutschland.

About DIC Asset AG:

DIC Asset AG is Germany's leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 225 assets with a combined market value of c. EUR 10.3 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment (EUR 2.0 billion in assets under management) represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate constant cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management and realising gains from sales.

In the Institutional Business segment (EUR 8.3 billion in assets under management), we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de