German lender Berlin Hyp has issued its second mortgage pfandbrief in benchmark format this year, with the launch of a seven year social pfandbrief backing German social housing.
The issuance marks the fourth social pfandbrief since the bank's debut issue in May 2022. According to Berlin Hyp, foreign investors subscribed 50% of the bond.
The seven-year bond with a volume of €500 mln has a coupon of 2.625% and is rated Aaa by the rating agency Moody's. The yield at Reoffer was 2.718%.
The syndicate banks mandated by Berlin Hyp as bookrunners included DekaBank, Erste Bank, HSBC, LBBW and UniCredit. Hauck Aufhäuser Lampe Privatbank acted as co-lead manager.
The final order book was €630 mln when the book closed on day of trading. The reoffer spread was fixed at mid-swap +27.
Half of the bonds’ proceeds were placed abroad, with 19% of the bond going to investors from the Benelux region, followed by Nordic countries with 18%.
The largest investor groups were banks (59%), public institutions (22%) and funds (13%). Savings banks and affiliated companies accounted for 28% of the issuance.
'We are very pleased to have taken an additional step in our ongoing commitment to refinancing affordable housing with our fourth social pfandbrief,' said Teresa Dreo-Tempsch, head of capital market business on Berlin Hyp's management board.
'Since our first social pfandbrief issuance in 2022, we have now issued a volume of €2.375 bn. This once again confirms the high level of investor interest in this asset class.'
