Eurohypo has placed a new Global Jumbo Mortgage Pfandbrief worth €3 billion in the market. The benchmark issue launched as a Global Pfandbrief, which has a 6-year term up to 18 January 2012, features a 3.0% coupon. The issue price was set at 98.880, with a re-offer price of 98.705. The spread of the issue is equal to the swap rate (flat) and 11.4 basis points over the 5% January 2012 Bund.
The issue has been given a rating of Aa1/AAA/AAA. Barclays Capital, Commerzbank, Dresdner Kleinwort Wasserstein and Landesbank Baden Württemberg (LBBW) are joint lead managers.
"The successful issue testifies to the strength and liquidity of the Pfandbrief market," said Eurohypo Management Board member Henning Rasche. "Information published on the price spread with a flat area created astounding market momentum, which gave us the opportunity to increase the issuance volume from EUR 2 billion to 3 million."
International investors showed particular interest in the Jumbo issue, with almost 50%. At 15%, the portion placed in Scandinavia was particularly high. 49% was placed with banks and a total of around 27% with funds.