Aareal Bank successfully placed a €522.5m (625m USD) mortgage Pfandbrief on the capital market. This benchmark bond was issued with a coupon of 1.875 % and will be payable on maturity on 15 September 2020. The issue price was 99.666 %. Thus, the Pfandbrief has a 1.991 % yield. This corresponds to a markup of 38 basis points on the current reference price on the USD swap market.
Since the issue met with strong interest from national and international investors, the order book volume exceeded €840m (1bn USD). The transaction was conducted by a consortium of Citi, Credit Suisse, Goldman Sachs, HSBC and Landesbank Baden-Württemberg.
"With this benchmark transaction, we are strengthening our foreign currency funding base for our lending business," says Thomas Ortmanns, member of the Management Board at Aareal Bank. "At the same time we are expanding our investor basis, as especially international investors showed strong interest."
The high quality of Aareal Bank's mortgage Pfandbriefe is confirmed by the highest rating scores awarded by FitchRatings and Moody's.
