Yesterday, Deutsche Hypothekenbank placed a benchmark mortgage Pfandbrief in British Pound (GBP) for the first time. The issue with a volume of GBP 325 million has a term of three years. The coupon on the GBP floater is +27 basis points above the 3-month GBP-LIBOR. The issue price was 99.85%. Deutsche Hypo has been advised by the joint lead managers Deutsche Bank, HSBC, J.P. Morgan and TD Securities and NORD/LB as co-lead managers.
The order book consisted mainly of large-volume orders from Germany, the UK and Norway. The main buyers of the issue were asset managers, banks and government related entities.
“With the issue of our first Green Pfandbrief at the end of 2017 and this successful issue of our first benchmark issue in Pound Sterling, we have made decisive progress in our funding activities”, underlines Sabine Barthauer, Member of the Board of Managing Directors of Deutsche Hypo. “We have thus both expanded our investor base and further strengthened our international competitiveness in the commercial real estate financing business. The importance of this issue is that it serves to fund the active new business of our London branch.”
Deutsche Hypo is a renowned issuer on the Pfandbrief market. 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: 22 March 2021
Volume: GBP 325 million
Spread: 3M-Libor plus 32 basis points
Coupon: 3M-Libor plus 27 basis points
Rating: Aa1 (Moody’s)
Stock exchange: Hannover