Hypo Real Estate Bank AG launches €1.5 Billion Mortgage Jumbo-Pfandbrief (DE)

Hypo Real Estate Bank AG, Munich, has successfully launched a Mortgage Jumbo-Pfandbrief worth €1.5 billion. It features an annual coupon of 3.25% and a term of 7 years. The spread was set at the lower end of the range of +5bp - +7bp at +5bp over mid-market swaps. The re-offer price fixed at 98,556%.

The Hypo Real Estate Bank AG Mortgage Pfandbrief was rated AA+ by Fitch and Aa3 (with positive outlook) by Moody’s. The placement was performed by a banking syndicate comprising HypoVereinsbank (HVB C&M), Dresdner Kleinwort Wasserstein (DRKW) and Landesbank Baden-Württemberg (LBBW) as lead managers and a group of co-leads comprising Barclays Capital, Bayerische Landesbank, Deutsche Bank, Morgan Stanley, HSBC, Westdeutsche Landesbank (West-LB) and WGZ-Bank. In Germany slightly more than 50% were placed, followed by Italy, Benelux and Scandinavia. The issue was preceded by a three-week roadshow through Europe.

Frank Lamby, Management Board spokesman at Hypo Real Estate Bank AG, said: “With the successful placement of the first Mortgage Jumbo-Pfandbrief after completion of the restructuring process last September, Hypo Real Estate Bank AG has made an impressive return to the capital

Treasury Head Volker Walz added: “The interest of national and international investors was very high. We had to close the order book early after three hours. The issue was over-subscribed by a factor of 2.1 at this time.

Source: Hypo Real Estate

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