Today, Deutsche Hypothekenbank has tapped its five-year Mortgage Pfandbrief in benchmark format with a remaining term of now about 3 ¾ years by EUR 250 million. Originally, this Pfandbrief was issued on 15 January 2013 with a volume of EUR 500 million and, with a volume of now EUR 750 million, offers a significantly higher market liquidity. The reoffer price as of today was 100.477% and gives a spread of -3 basis points versus mid swap. This is 4 basis points below the original issue spread of mid swap +1.
With 28 orders, the order book was closed after approximately two hours. Demand for the Pfandbrief came mainly from Savings banks and Landesbanks as well as from cooperative institutions and German and European funds. A European Central Bank was also one of the investors. The bulk of orders came from Germany.
The tap was accompanied by a bank syndicate of Commerzbank, BayernLB, DekaBank, Deutsche Bank, Natixis and NORD/LB.
“We use our market opportunities as effectively as possible. The conditions on this tap of the Mortgage Pfandbrief were very competitive and ensure our strong market position in the credit business”, explains Andreas Pohl, speaker of the Board of Managing Directors.
Deutsche Hypo, a 140-year-old Pfandbrief bank, is one of the most renowned issuers in the market. The bank plans a refinancing volume of around EUR 3.9 billion in 2014 compared to EUR 3.3 billion in the last year. Deutsche Hypo issues Pfandbriefe as well as unsecured bearer and registered bonds.
Benchmark issue key figures:
Issuer: Deutsche Hypothekenbank (Actien-Gesellschaft)
Format: Mortgage Pfandbrief
ISIN: DE000DHY3855
Maturity: 14 January 2018
Value day: 9 April 2014
Volume: EUR 750 million (original transaction: EUR 500 million
tap EUR 250 million)
Spread: Original transaction: mid swap plus 1 basis point
Tap: mid swap minus 3 basis points
Coupon: 0.875%
Rating: Aa2 (Moody’s)
Stock exchange: Hanover