Real estate lender Berlin Hyp has raised €300 mln with the issue of the first syndicated senior preferred bond by a German bank.
According to the institution, despite its very tight spread the Aa2 and A+ (Moody’s, Fitch) rated debut transaction with a five-year maturity encountered good demand, with 42 different investors participating. Banks took approximately 85% of the deal.
'We are the first German bank to issue a syndicated senior preferred bond and at the same time achieved an excellent spread level. We owe a debt of gratitude to our investors who made this debut a big success,' said Gero Bergmann, member of the board of managing directors at Berlin Hyp.
Berlin Hyp took pioneering steps in 2015 with the first green Pfandbrief and again in 2016 when it became the first issuer of a covered bond with a negative yield.
Changes to the insolvency regime for German bank liabilities which came into effect on 21 July have enabled German financial institutions to issue non-covered, non-subordinated debentures either as senior non-preferred or as senior preferred types for the first time.
Syndicate banks Commerzbank, DZ Bank, and LBBW handled the order books.
