DZ HYP's Green Mortgage Pfandbrief several times oversubscribed
03.07.2024
- Volume of 500 million euros
- Term 4.2 years, coupon is 3.125 per cent
- Over 100 investors involved
DZ HYP successfully placed its fourth benchmark issue this year on Tuesday, 2 July 2024. The Green Mortgage Pfandbrief with a volume of 500 million euros, a term until 20 September 2028 and a coupon of 3.125 percent met with extremely strong demand. The issue was supported by a syndicate consisting of DekaBank, DZ BANK, Erste Group, NatWest, NORD/LB and Société Générale.
Following the announcement of the issue on Monday morning, the order book opened at around nine o'clock on Tuesday with a spread of mid-swap plus 26 basis points (vs. 6-month Euribor). The strong interest shown by investors was reflected in the steady and rapid growth of the order book volume, which peaked at 2.45 billion euros. Due to the more than fourfold oversubscription, the final spread was set at mid-swap plus 20 basis points (vs. 6-month Euribor). The allocable order book totalled 2.3 billion euros and was carried by 102 investors.
The majority of investors came from the German domestic market (60 per cent). Numerous international investors - Nordics (12.8 per cent), UK & Ireland (6.2 per cent), Austria (4.8 per cent), Southern Europe (4.6 per cent), Asia (4 per cent), Benelux countries (4 per cent), Switzerland (2 per cent) - were represented.
The composition of investors was mainly characterised by banks (65.9 per cent), followed by asset managers (15.9 per cent) as well as central banks and public institutions (13.65 per cent).
"By issuing Green Mortgage Pfandbriefe, DZ HYP is generating funds for the financing of energy-efficient buildings, thereby supporting the transformation of the property sector. The multiple oversubscription of our Green Bond and the high number of investors are wonderful proof of the importance of the green product on the market," commented Sabine Barthauer, CEO of DZ HYP.
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