German lender Berlin Hyp was the first property financier to issue an unsecured benchmark bond in 2014 with the placing of a €500 mln five-year senior facility.
German lender Berlin Hyp was the first property financier to issue an unsecured benchmark bond in 2014 with the placing of a €500 mln five-year senior facility.
Due to the strong demand, the volume was increased to €750 mln, the bank said. The bond was issued with an initial spread at mid-swap + high 50s, and the order book opened in the mid-swap +55 region. The bank received orders for as much as €2.1 bn at this level, Berlin Hyp said.
The order book was closed by the underwriting banks after less than an hour and the price was set at mid-swap +53 basis points. The bond’s coupon rate is 1.625%.
The order book included about 200 individual orders, the majority of which came from Germany (80%). The share of subscriptions by foreign investors was dominated by orders from Scandinavia.
The unsecured bond was placed on the market by a consortium consisting of Commerzbank, DekaBank, DZ Bank, HSBC and Landesbank Baden-Württemberg.