German lender Berlin Hyp has issued its fourth mortgage Pfandbrief in benchmark format for 2023.
The launch marked Berlin Hyp's 20th green bond issue since the debut issue in April 2015.
The seven-year bond with a volume of €750 mln carries an interest coupon of 2.875% and is rated Aaa by the rating agency Moody's. The yield at reoffer was 2.99%.
The syndicate banks assigned by Berlin Hyp Commerzbank, Crédit Agricole, DZ Bank, JP Morgan and LBBW opened the order books on Tuesday morning at a spread of mid-swap +11 basis points. Hauck Aufhäuser Lampe Privatbank acted as co-lead manager.
The final order book stood at €835 mln at book closing. A total of 52 investors participated in the Pfandbrief. At 83%, the majority of the bond was placed in Germany.
Banks formed the largest investor group with 68%, followed by central banks and official institutions (15%) and funds (12%). Savings banks and affiliated companies accounted for 29% of the issue.
Teresa Dreo-Tempsch, who is responsible for capital markets business on the board of management of Berlin Hyp, said: 'We have issued our tenth green Pfandbrief and our twentieth green bond since 2015. We are very pleased that ESG refinancing instruments have become such an essential part of our funding mix,' she concluded.
