Westdeutsche ImmobilienBank AG (WestImmo) has successfully placed a 500 million mortgage Pfandbrief on the capital market. The coupon amounts to 3% and the yield mark-up is 55 basis points above swap average. The term is 3.5 years. The consortium backing the transaction comprises WestLB, DZ Bank and UniCredit Group (HVB).
The issue has been placed largely with German investors. About 45% have been sold to funds and other asset managers and 55% have mainly gone to banks in the savings bank and cooperative sector.
"The great interest shown by investors, particularly from the savings bank and cooperative sector, indicates the confidence that they have in the WestImmo mortgage Pfandbrief. These investors appreciate the security and strength of the Pfandbrief, which is based on high quality cover funds. For us, the mortgage Pfandbrief issue is the key refinancing instrument within the context of our business model", says Peter Knopp, Chairman of the WestImmo Managing Board.
With this issue WestImmo has returned to the ranks of major mortgage Pfandbrief issuers after a five years. In recent times the bank has been placing smaller coupons on the capital market on an ongoing basis. In 2008 WestImmo's issue volume was 1.9 billion.
Source: Westdeutsche ImmobilienBank AG