German lender Berlin Hyp has issued its first benchmark-sized mortgage pfandbrief with a ten-year maturity, beating the previous longest term of eight years.
The €500 mln bond has a coupon of 0.375% and is rated Aaa by Moody's, the bank said.
On Wednesday morning at 9 am, syndicate banks BayernLB, DekaBank, Commerzbank, DZ Bank and UniCredit opened the order book with a spread guidance of mid-swap +2 basis points, generating orders worth €1 bn within one hour.
Before books closed at 10.45 am, demand reached €1.3 bn, enabling the syndicate banks to price the bond at mid-swap -2 basis points, Berlin Hyp said.
The lender said that 63% of the issue was placed domestically, with overseas interest coming in particular from Asia (13%), Scandinavia (13%) and Switzerland (5%). Banks ordered 38% of the bond, while funds participated to the tune of 31%. A further 22% went to central banks and public institutions, while savings banks and affiliated companies subscribed almost 19% of the issue.
'We are pleased that our first ten-year Mortgage Pfandbrief issue has met with strong demand from both domestic and international investors. We value this as a great sign of confidence in Berlin Hyp and as recognition of our intensive investor work,' commented Gero Bergmann, member of the board of managing directors at Berlin Hyp.
