DZ HYP successfully places dual-tranche issue
03.04.2025
- Benchmark dual-tranche issue with one Green and one conventional Pfandbrief
- Issue size: €500 million each
- Maturities: 4.4 years (Green) / 9.9 years
- Coupons: 2.50 per cent (Green) / 3.00 per cent
DZ HYP placed a benchmark dual-tranche issue on Wednesday, 2 April 2025. There was particularly high investor interest in the €500 million, 2.50 per cent Green Mortgage Pfandbrief, which matures on 31 August 2029. The longer-dated tranche, which also has an issue size of €500 million, has a 3.00 per cent coupon and matures on 28 February 2035. This conventional Mortgage Pfandbrief was also in great demand. The issue was placed by an international syndicate comprising Crédit Agricole CIB, DZ BANK, ING, LBBW, NatWest Markets and UBS.
After the transaction was announced on Tuesday, the order book for the green tranche was opened the following morning with a spread of 33 basis points over mid-swap (vs. 6-month Euribor). The longer-dated conventional tranche started at mid-swap plus 51 basis points (also vs. 6-month Euribor).
The high level of investor interest led to a dynamic order book volume development for both tranches. The final spread for the Green Mortgage Pfandbrief was set at mid-swap plus 26 basis points (vs. 6-month Euribor), with an allocable order book volume of €2.3 billion carried by a total of 86 investors. The final spread for the longer-dated tranche was fixed at mid-swap plus 47 basis points – here, 55 investors created an allocable order book volume of €1.35 billion.