Hypo Real Estate Bank AG, Munich, has successfully launched a Mortgage Jumbo-Pfandbrief worth â¬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 Moodyâs. 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: âWith 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
markets.â
Treasury Head Volker Walz added: âThe 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
