Deutsche Pfandbriefbank issues EUR 1b pfandbrief

Deutsche Pfandbriefbank announced on Thursday that it has successfully placed a EUR 1 bn public sector jumbo pfandbrief. The bank said it has met with a very positive market response and the volume in the order book was EUR 1.3 bn.

The bank said the 10-year Pfandbrief has a 4% coupon. Deutsche Pfandbriefbank pays 55 basis point (0.55 %) spread over mid-swaps. Based on the re-offer price of 99.563 %, the Pfandbrief has a 4.054 % yield.

Axel Wieandt, CEO of Deutsche Pfandbriefbank, said: 'The investors’ confidence in Deutsche Pfandbriefbank and, with it, the entry into the refinancing market are essential for the further, positive development of the bank. The current 10-year Pfandbrief opens up long-term possibilities for us in the lending business and reconfirms the confidence which has already been put in us in the case of long term private placements.'

This is the second large Pfandbrief placing by Deutsche Pfandbriefbank (formerly Hypo Real Estate) in recent weeks after more than a year away from the public market. At the beginning of September, the bank issued a EUR 1.5 bn Jumbo Mortgage Pfandbrief.