Enormous demand for 15-years benchmark Mortgage Pfandbrief of MünchenerHyp

Münchener Hypothekenbank eG (MünchenerHyp) has very successfully issued a benchmark Mortgage Pfandbrief after the summer break in the covered bond market. The issue size amounts to € 500 million with a maturity of 15 years.

Investor demand was exceptionally strong. After only 45 minutes, the order book had reached the volume of € 1 billion. After one and a half hours it was closed at over € 1.8 billion. The coupon is 0.125 percent. The issue was launched at a price of 7 basis points above mid-swap.

"The demand for long term loans in residential property financing was very strong in the first half of the year despite the corona pandemic. Our current benchmark issue enables us to refinance at a high maturity match at conditions that are also attractive for our investors," said Dr Louis Hagen, Chairman of the Board of Management of MünchenerHyp.

A total of over 70 orders from 14 countries were placed. Germany was the regional focus, accounting for 71 percent of the issue volume. The largest group of investors were banks with 38 percent of the issue volume, followed by asset managers and funds with 30 percent. Credit Agricole, Deutsche Bank, DZ Bank, Helaba and UniCredit were leading the transaction.

The rating agency Moody's has given MünchenerHyp's Mortgage Pfandbriefe the highest rating of Aaa.