Hypo Real Estate Bank International AG in Stuttgart has for the first time successfully launched a Pfandbrief as a Kangaroo bond. The Kangaroo Pfandbrief of Hypo Real Estate Bank International AG is the first issue of this type in Australia.
It meets the requirements of the German Pfandbrief law as well as local legislation. The public sector Pfandbrief will be issued under the law of New South Wales. This is accordingly the first time that it will be possible for a Pfandbrief to be also purchased by Australian investors, who previously have only been able to invest in papers issued under local law.
The issue volume is A$400 million (circa €250 million), and the "Kangaroo" Pfandbrief comes with an annual coupon of 5.75% with a duration of ten years. The issue will be included in the main Australian index, namely the UBS Composite Bond Index. It is thus an interest investment opportunity for all investors focusing on the index. This index comprises all papers with a maturity of more than one year and with a volume in excess of A$100 million. With a volume of A$400 million, the Kangaroo Pfandbrief of Hypo Real Estate Bank International is the largest ever covered bond issued in the Australian market.
The Kangaroo Pfandbrief of Hypo Real Estate Bank International AG has been rated AAA by S&P and Aa1 (with a review for possible upgrade) by Moody`s. It has been placed by a syndicate. The lead manager is ABN Amro, Co-managers are TD Securities (Toronto Dominion Securities) and UBS.
Source: Hypo Real Estate