HSH Nordbank yesterday (January 20, 2011) closed its first larger-sized capital market transaction of 2011. The Bank placed a mortgage Pfandbrief in the amount of 500 million and a term of 3.5 years. The coupon is 2.5%. The issue price was set at 99.622%, which equates to a re-offer spread of 25 basis points above the mid-market swap rate.
Back in December rating agency Moody's already gave the related cover pool amounting to about 6 billion, the highest possible rating of Aaa. HSH Nordbank is thus the only bank in Germany to have the three rated Pfandbrief cover pools.
Up to midday yesterday, the mortgage Pfandbriefs order book reached the targeted amount, allowing it to be closed with over-subscription. HSH Nordbank issued the mortgage Pfandbrief as joint lead together with BNP Paribas, Commerzbank, Deutsche Bank and Société Générale.
Source: HSH Nordbank