Deutsche Hypo successfully issued its first benchmark mortgage Pfandbrief in 2016 today. The volume of the issue is 500 million euros. The cover pool contains mortgage loans to commercial real estate customers in Germany, the UK, the Netherlands, France and Poland – the target markets of Deutsche Hypo.
The mortgage Pfandbrief with a seven-year maturity carries a coupon of 0.25%. The issue price of 99.482% corresponds to a yield of 0.325%. Deutsche Hypo has been supported in the transaction by BayernLB, Crédit Agricole CIB, DZ Bank, HSBC and NORD/LB, which have proved their placement strength.
After 30 orders had been received with a volume of around 750 million euros within a short time, Deutsche Hypo closed its order book today and made the allocation of 500 million euros. The investors are from Germany and other European countries. They include asset managers as well as savings banks, Landesbanks, private banks, cooperative banks and central banks.
“In light of the difficult political situation in the world and the high volatility on the commodity, asset and capital markets, we can be very satisfied with our current issue,” emphasizes Andreas Pohl, Speaker of the Board of Managing Directors of Deutsche Hypo. “Once again, a broad investor base has expressed interest in a benchmark issue of Deutsche Hypo. This shows the good standing of our bank on the market. Considering the current transaction there is a continuous issue curve in the years 2016 to 2023, in each of which a benchmark Pfandbrief becomes due.
Deutsche Hypo looks back on nearly 145 years of experience in the capital markets, and is one of the oldest Pfandbrief banks in Germany. In addition to Pfandbriefe it also issues unsecured bearer and registered bonds.
Benchmark issue key figures
Issuer: Deutsche Hypothekenbank (Actien-Gesellschaft)
Format: Mortgage Pfandbrief
Maturity: 22 February 2023
Volume: EUR 500 million
Spread: mid swap plus 1 basis point
Rating: Aa1 (Moody’s)
Stock exchange: Hanover
Deutsche Hypothekenbank (Actien-Gesellschaft) is a Pfandbriefbank specialising in the financing of commercial real estate and capital market business with clients in Germany and abroad. It is a member company of the NORD/LB Group in which it forms the centre of competence for the core business field of Commercial Real Estate Financing. Founded in 1872, Deutsche Hypo operates in Germany, the United Kingdom, France, the Benelux countries and Poland. The Bank has its headquarters in Hanover, with locations in Hamburg, Frankfurt and Munich, as well as in Amsterdam, London, Paris and Warsaw. With around 400 employees and total assets of € 28.1 billion, Deutsche Hypo is among the major German real estate financing institutes. Further information on Deutsche Hypo can be found at deutsche-hypo.de.
Carsten Dickhut, Head of Communication, Tel.: +49 511 3045-580, Fax: -589; E-Mail: email@example.com