Deutsche Hypo places new benchmark issue

With the issuance of a mortgage Pfandbrief in benchmark format, Deutsche Hypothekenbank further expands its funding base. The 7-year mortgage Pfandbrief has a volume of EUR 500 million and a coupon of 1.25 percent. The mortgage loans included in the collateral pool mainly originate from the core markets Germany, the UK, the Netherlands and France and represent the continuously successful commercial real estate finance business of the Bank. The issue price was at 99,099 percent and thus corresponds to a spread of 4 basis points over mid-swap. The consortium of banks that has accompanied the transaction includes the NORD/LB as well as BayernLB, Deka Bank, DZ Bank and UniCredit.

Overall, during the order period more than 30 purchase orders have been received. “The demand for our mortgage Pfandbrief confirms the confidence investors have in Deutsche Hypo,” Stephan Thomas Bürkle, Chief Executive Officer of the Bank, pointed out.

Especially Savings Banks, Landesbanks, Central Banks, asset managers and insurance companies in Germany and German-speaking countries were in the order book. Other investors came from Asia, the UK and Continental Europe. “After our first 5-year benchmark issue in June this year and its tap in August to a total of EUR 750 million, we have chosen to complete our benchmark curve specifically with a 7-year term, said Dirk Schönfeld, Head of Treasury of Deutsche Hypo.

Deutsche Hypo, a 140-year-old Pfandbrief bank, is one of the renowned issuers in the market. The bank plans a funding volume of around EUR 4.2 billion this year compared to approximately EUR 5 billion in 2011. Deutsche Hypo issues Pfandbriefe as well as unsecured bearer and registered bonds.

The benchmark issue’s key data at a glance

Issuer: Deutsche Hypothekenbank (Actien-Gesellschaft)
Format: Mortgage Pfandbrief
ISIN: DE000DHY3681
Maturity date: 2 October 2019
Volume: EUR 500 million
Spread: Mid-swap rate plus 4 basis points
Coupon: 1.25 %
Rating: Aa2 (Moody’s)
Listing: Hanover