Jumbo Public Pfandbrief from Eurohypo of € 2.5 bn (DE)

Eurohypo AG has placed a new Jumbo Public Pfandbrief with a volume of €2.5 bn on the market at excellent terms. The benchmark emission, issued as a global Pfandbrief with a term of four years until 9 June 2009, has a coupon of 2.5%. The issue price is 99.933 and the re-offer price 99.778. The spread of the considerably oversubscribed issue, for which originally only a volume of €2 bn was planned, is three basis points below the swap rate and 11.5 basis points above the federal bonds of series 144.

The issue has a rating of Aaa/AAA/AAA. Joint lead managers are ABN-Amro, Citigroup, Commerzbank and Dresdner Kleinwort Wasserstein.

"Our Jumbo Pfandbrief is a special issue," explains Henning Rasche who as member of Eurohypo's Management Board is in charge of the Global Markets division. He says that despite the pressure the French and Dutch vote on the EU Constitution have exerted on the euro, the demand for the Jumbo Pfandbrief was very high. Thirty-six per cent of the issue were placed in Europe and the Middle East, and another 18 per cent had gone to Asia. The figures, he states, are impressive proof of the unbroken trust of international investors in euro-dominated investments. "What could demonstrate the investors' confidence better than our oversubscribed order book and the spread we could achieve with our issue?" Rasche asks.

Furthermore, he adds, the new Eurohypo Jumbo demonstrates the continued strong level of interest amongst investors at home and abroad in covered bond products. While with other spread products of the more recent past a certain reservation could be noticed, there was a continued and noticeable demand for Pfandbrief products."

Source: Eurohypo

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