German lender Deutsche Hypothekenbank has placed a benchmark mortgage pfandbrief in British pounds for the first time to fund new business from its London branch.

euro houses in hands rs

Euro Houses in Hands Rs

The issue with a volume of £325 mln (€370 mln) has a term of three years.

The coupon on the GBP floater is +27 basis points above the 3-month GBP-Libor. The issue price was 99.85%. 

'With the issue of our first green pfandbrief at the end of 2017 and this successful issue of our first benchmark issue in pound sterling, we have made decisive progress in our funding activities,' said Sabine Barthauer, member of the management board of Deutsche Hypo. 'We have thus both expanded our investor base and further strengthened our international competitiveness in the commercial real estate financing business. The importance of this issue is that it serves to fund the active new business of our London branch.'

The order book consisted mainly of large-volume orders from Germany, the UK and Norway. The main buyers of the issue were asset managers, banks and government-related entities.

Deutsche Hypo was advised by the joint lead managers Deutsche Bank, HSBC, JP Morgan and TD Securities and NORD/LB as co-lead managers.