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DZ HYP successfully issues ten-year Mortgage Pfandbrief


  • Pfandbrief of €500 million
  • Order book volume totals €2.2 billion 
  • Coupon is 3.125 per cent

DZ HYP took advantage oft he current positive sentiment on the bond market and today issued yesterday, Wednesday, a ten-year Mortgage-Pfandbrief, which was welcomes by investors with strong demand. The €500 million bond carries a coupon of 3.125 per cent. The transaction was accompanied by a banking consortium consisting of Bank of Montreal, BNP Paribas, Commerzbank, DZ BANK, LBBW and Santander. 

Following the announcement of the bond the previous day, the marketing process startet with a spread of Midswap plus 41 basis points (vs. 6-month Euribor). Right from the start, the orderbook developed with great dynamism and low spread sensitivity, allowing the price tob e set at Midswap plus 35 basis points (vs. 6-month Euribor). The final orderbook volume totalled €2.2 billion. A total of 100 investors participated in the issue.

The strongest investor interest came from the home market of Germany (71.6 per cent), followed by investors from Austria and Switzerland (7.8 per cent), Scandinavia (6.6 per cent) and other Western European countries (4.4 per cent). Further demand was generated from Benelux (4.2 per cent) and Southern european countries (3.2 per cent). 

In terms of investor types, bank treasuries traditionally accounted fort he largest share of 58.6 per cent. Asset managers and funds subscribed for 24.6 per cent, while insurance companies and pension funds accounted for a total of 15.0 per cent. 
Sabine Barthauer, CEO of DZ HYP, emphasised: "The extremely strong response to our ten-year Pfandbrief issue underlines the attractiveness of German covered bonds in the investment unisverse if investors.“