DZ HYP successfully places Jumbo Pfandbrief

• Mortgage Pfandbrief with a duration of 9.9 years
• Issue size of €1 billion
• 3.00 per cent coupon 

DZ HYP successfully placed a €1 billion Mortgage Pfandbrief issue on the capital markets on Tuesday, 24 June 2025. The benchmark bond, which has a 3.00 per cent coupon, matures after almost ten years on 31 May 2035, a fact that has led to strong interest from institutions looking for long-term investments. 

The issue was placed by a syndicate comprising ABN AMRO, Bayerische Landesbank, Bank of Montreal, Commerzbank, DZ BANK and Société Générale. 

After the transaction had been announced the day before, the order book was opened on Tuesday morning with a spread of mid-swap plus 52 basis points (vs. 6month Euribor). Due to the broad and stable demand, the final spread was fixed at mid-swap plus 46 basis points, with an allocable order book volume of €2.38 billion carried by a total of 89 investors. 

“The very successful Jumbo placement shows that there is strong demand for DZ HYP Pfandbriefe, even in a challenging geopolitical environment. Given the very positive result with a high oversubscription ratio, we were able to meet investor 2/2 demand at the end of the first half of the year with a long-term Mortgage Pfandbrief issue”, said Sabine Barthauer, Chief Executive Officer of DZ HYP. 

Geographically speaking, investor interest was dominated by Germany, Austria and Switzerland (the “DACH” region), which accounted for 66 per cent, followed by the Benelux countries (11 per cent), Norway and Denmark (6 per cent), Great Britain and Ireland (5 per cent), with other regions making up the remaining 12 per cent. 

As regards investor types, banks were the largest group at 54 per cent, followed by asset managers and funds (28 per cent), central banks and public-sector institutions (13 per cent), insurance companies (4 per cent) and investment managers (1 per cent).