• Successful Green covered bond significantly oversubscribed
• Maturity of 4.5 years
• High proportion of Sustainable Responsibility Investment investors

The covered bond market returned from its summer break at the same time as the end of the summer vacations in some Germany federal states. DZ HYP took advantage of the positive market sentiment to issue a EUR 500 million Green Mortgage Pfandbrief with a maturity of 4.5 years and a coupon of 3.375 per cent.

The transaction was accompanied by a syndicate consisting of Barclays, Deutsche Bank, DZ BANK, Helaba, Societé Generale and Toronto Dominion.

The marketing of the bond started the day before with the public announcement of the issue. When the order book opened early on Thursday morning with a spread guidance of +9 basis points, investor demand for DZ HYP's Green Pfandbrief was extremely strong and continuous. The bond was more than 4 times oversubscribed at the close of the order book (around EUR 2.4 bn incl. JLM EUR 185 mn). It was finally placed with a spread of +4 basis points. The allocable order book volume amounted to around EUR 1.6 bn.

As expected, the strongest demand came from the German domestic market (64 per cent). Scandinavian investors (14.3 per cent), investors from Benelux (8.3 per cent), France (6.3 per cent) and Austria and Switzerland (4.1 per cent) also showed particular interest.

Among the investors, 41.4 per cent were banks, followed by asset managers and funds (30.5 per cent), central banks/public institutions (15.3 per cent) and insurance companies (12.8 per cent).

The high proportion of Sustainable Responsible Investment investors of around 46 percent is also particularly pleasing.

Commenting on the extremely positive result of this Green transaction, Sabine Barthauer, Chief Executive Officer of DZ HYP, said: "We are very pleased with the extremely high demand for our Green Pfandbrief. This result confirms us on our path to support the sustainable transformation of the real estate industry with our contribution."