Today, Deutsche Hypo has very successfully issued a seven-year mortgage Pfandbrief in benchmark format. The volume amounted to 500 million euros. The cover pool consists of mortgage loans from commercial real estate customers with objects mainly in Germany, UK, the Netherlands, France and Poland.
The Pfandbrief has a coupon of 0.125 percent and the issue price was 99.348 percent, which corresponds to a yield of -14 basis points to mid-swap. The transaction was accompanied by a syndicate consisting of BayernLB, Crédit Agricole CIB, Commerzbank, DZ Bank and NORD/LB as lead manager and Bankhaus Lampe as co-lead. With 86% the Pfandbrief had a particularly large demand from Germany, Austria and Switzerland. The other orders came from the Benelux countries, the UK and from Asia and the Middle East. Investors include banks, central banks, savings banks and asset managers.
Following the 30-minute initial price talk, the order book was open for 15 minutes. During this period more than 70 orders were received and the total volume was almost 2 billion euros. Thus, the issue was almost four times oversubscribed. Despite the low interest rates and the moderate yields the issue came across a considerable demand. “The impressive high demand for our first issue of the year reflects the strong confidence of investors in Deutsche Hypo,” said Andreas Pohl, speaker of the Board of Managing Directors. “As a strong partner for investors, Deutsche Hypo sets high quality standards in the Pfandbrief market.”
Deutsche Hypo looks back on 140 years of experience in the capital markets, and is one of the oldest Pfandbrief banks in Germany. For 2015, a funding volume of 4.5 billion euros is planned. In addition to Pfandbriefe Deutsche Hypo also issues unsecured bearer and registered bonds.
Benchmark issue key figures
Issuer: Deutsche Hypothekenbank (Actien-Gesellschaft)
Format: Mortgage Pfandbrief
Maturity: 20 April 2022
Volume: EUR 500 million
Spread: mid swap minus 14 basis point
Rating: Aa2 (Moody’s)
Stock exchange: Hanover