German lender Berlin Hyp has placed its first mortgage bond Pfandbrief of 2014 with the issue of a €500 mln seven-year facility at a coupon rate of 1.25%.

German lender Berlin Hyp has placed its first mortgage bond Pfandbrief of 2014 with the issue of a €500 mln seven-year facility at a coupon rate of 1.25%.

The bond, which was rated Aaa and AA+ by ratings agencies Moody’s and Fitch, was placed on the market by a consortium consisting of Commerzbank, Credit Suisse, DZ Bank, J.P. Morgan and Landesbank Baden-Württemberg.

The order book opened in the mid-swap +7 region and closed at mid-swap +5 basis points only 1.5 hours later. At this level, it received orders worth over €800 mln, representing an oversubscription of more than 60%.

German investors were behind 89% of the orders, with the strongest backers comprising banks and German savings banks, which accounted for 67% of all investors.