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8-year Mortgage Pfandbrief issue successfully placed

Third benchmark issue during the 2016 financial year

On 25 October 2016, DG HYP took advantage of the positive market environment and successfully placed its third benchmark bond of the current financial year. The €500 million Mortgage Pfandbrief has a maturity of eight years (maturity date: 6 Dec 2024) and a coupon of 0.05 per cent.

The order book filled solidly at an offered spread of –12 BP as the bookbuilding process opened, reaching the targeted order volume of €500 million after just 20 minutes. During the course of the transaction, investor demand rose to more than €850 million, leading to a final spread of –14 BP.

Altogether, more than 40 investors took part in the transaction. As expected, it was German investors who subscribed for the largest share (81%) – with investors from Norway (6%), the Benelux countries (6%), Switzerland (3%), and France (2%) accounting for the majority of international investors (19%). The bond was issued to banks (48%), central banks (31%), asset managers (13%), retail investors (6%) and insurance companies (2%).

The transaction was managed by a syndicate comprising DZ BANK, ABN Amro, Deutsche Bank, Helaba, and Natixis.