German property bank Aareal Bank has announced that it successfully placed a EUR 500 mln, 3.25 year mortgage bond issue on the capital market. Given the 2.62% coupon, the bond's issue price of 99.71% is equivalent to a spread of 45 basis points above mid-swaps. The transaction was syndicated by DZ BANK and UniCredit (HVB).
German property bank Aareal Bank has announced that it successfully placed a EUR 500 mln, 3.25 year mortgage bond issue on the capital market. Given the 2.62% coupon, the bond's issue price of 99.71% is equivalent to a spread of 45 basis points above mid-swaps. The transaction was syndicated by DZ BANK and UniCredit (HVB).
'With this issue, we capitalised on the positive capital markets environment over recent weeks to raise funding at an attractive level', said Thomas Ortmanns, member of Aareal Bank's management board responsible for the bank's capital markets activities. This was Aareal Bank's second public placement this year:
Ortmanns added: 'The issue went smoothly thanks to the combination of the bank's sound business model, an established capital markets instrument, and a top-quality cover assets pool. At the same time, the successful placement is a sign of resurgent investor interest in Pfandbrief issues.'
