German real estate lender Aareal Bank has placed a €500 mln mortgage Pfandbrief on the capital market.
The bond was issued with a coupon of 0.01% and will be payable on maturity on 4 July 2022.
The issue price was 99.68%. Therefore, the Pfandbrief has a 0.069% yield, equating to a discount of eight basis points to the current reference price on the swap market.
Aareal said that the issue attracted strong interest from national and international investors. The order book volume exceeded €1 bn after an hour, and was almost three times oversubscribed upon order book closing. The transaction was conducted by a consortium of Commerzbank, DekaBank, DZ Bank, LBBW and Unicredit.
The Pfandbrief issue was the first one Aareal Bank launched after the bank's mortgage Pfandbriefe was rated Aaa by Moody's on 12 January 2017.
