German real estate lender Berlin Hyp has issued its third €500 mln pfandbrief, or German covered mortgage bond, since the start of 2015.

German real estate lender Berlin Hyp has issued its third €500 mln pfandbrief, or German covered mortgage bond, since the start of 2015.

The latest pfandbrief announced on Thursday was heavily oversubscribed. Berlin Hyp's chosen syndicate banks Commerzbank, Deka, HSBC and UniCredit opened the order book on Thursday morning at 9 am. Bankhaus Lampe and WGZ Bank were co-lead managers.

Orders with a total volume in excess of €1.2 bn were generated from more than 40 different investors. The order book was closed at 10:15 am with an interest coupon of 0.125%.

The pfandbrief has a five-year term and is rated at Aaa and AA+ by rating agencies Moody’s and Fitch respectively.

Some 88% of the pfandbrief went to German investors, followed by investors from Scandinavia and
Switzerland, who accounted for 5% and 4% respectively. Banks and savings banks were the largest investor group, accounting for 51% of the total.

Fourth time around
Berlin Hyp issued its first green pfandbrief in April with a volume of €500 mln and a term of seven years, followed by another €500 mln pfandbrief in July. The bank also issued an unsecured bank debenture for €750 mln in January of this year.