DZ HYP issues public Pfandbrief
04.04.2023
- € 500 million bond
- Duration of four years and six months
- 3.00 per cent coupon
DZ HYP successfully executed its second benchmark transaction this year on Tuesday, 04 April 2023. The Public Pfandbrief, with a volume of € 500 million, has a duration of four years and six months, and a coupon of 3.00 per cent.
The offering of the bond started on Monday this week with the announcement of the transaction. The syndicate consisting of ABN AMRO, Bayern LB, Commerzbank, DZ BANK, Natixis, and Scotiabank accompanied the issuance.
The order book opened on Tuesday morning with a spread of 8 basis points over mid-swap (vs. 6-month Euribor) and grew to over 2,6 billion euros thanks to steady investor demand. The spread was finally fixed at 3 basis points over swap midpoint.
The order book included around 100 investors and was largely driven by German investors (68 percent). There was also strong demand from Austria and Switzerland (13 percent). In addition, investors from Scandinavia (10 per cent) and other European countries (7 per cent) participated.
"As a competence centre for public sector lending in the Cooperative Financial Network, we support domestic municipalities in fulfilling their mandate. We are delighted that we can once again offer our investors a Public benchmark Pfandbrief.," said Sabine Barthauer, Member of the Management Board of DZ HYP.
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