Deutsche Hypo successfully increases mortgage Pfandbrief to EUR 750 million

Europe’s first covered bond in 2019 with a negative spread


Deutsche Hypo has successfully increased a benchmark mortgage Pfandbrief issued in June 2018 by EUR 250 million. The Pfandbrief with a coupon of 0.5% now has a volume of EUR 750 million. The residual term stands at approximately seven years. The issue price of 101.935% corresponds to a yield of 0.226% (minus 1 basis point to mid-swap). As a result, the increase is Europe’s first covered-bond issue in 2019 with a negative spread.


The order book was oversubscribed fourfold and contains 45 orders, mainly from European institutional investors. At just under 50%, the largest share of investors is based in Germany, followed by Denmark and Norway. The issue was accompanied by a bank consortium including NORD/LB, Crédit Agricole, Commerzbank, Helaba and UniCredit.


“The increase underscores Deutsche Hypo’s excellent standing on the capital market. The significant oversubscription to the issue suggests a high level of demand for our securities and reflects the tremendous trust our investors place in us – something we see as a sign of appreciation and as a source of motivation. Having issued the first covered bond of the year with a negative spread is a huge success,” says Sabine Barthauer, Member of the Board of Managing Directors at Deutsche Hypo.


Benchmark issue key figures

Issuer:           Deutsche Hypothekenbank

Format:         Mortgage-Pfandbrief

WKN:            DE000DHY4960

Maturity:       June 2026

Volume:        € 750 million

Spread:          Mid-swap minus 1 bp

Coupon:         0.5 %

Rating:           Aa1 (Moody’s)

Stock Exchange: Hanover