Extraordinarily strong demand for Münchener Hypothekenbank's seven-year Mortgage Pfandbrief

Münchener Hypothekenbank’s second large-volume Pfandbrief issue of this year met with a very strong response from investors.

The Mortgage Pfandbrief with a volume of EUR 500 million and a term of seven years was oversubscribed shortly after the order book opening. After around two hours, the order book was closed with a volume of around 1.3 billion euros. The spread is 24 basis points above mid swap. The coupon is 3.00 per cent.

"Once again, we have demonstrated our placement power with this issue. This shows the impressive demand from national and international investors," said Dr Holger Horn, Chairman of Münchener Hypothekenbank's Board of Management.

"In a very attractive market environment we succeeded with this issue in attracting investors who specifically invest in medium-term maturities," said Martin Schmid, Head of Strategic Funding and ALM at Münchener Hypothekenbank.

A total of 70 orders were placed from 15 countries. Germany was the regional focus, accounting for around 75 per cent of the issue volume. The largest investor group was banks with 52 per cent of the issue volume, followed by asset managers and funds with 26 per cent and central banks, which acquired 16 per cent of the issue volume.

The transaction was lead managed by Bank of Montreal Europe, BayernLB, Commerzbank, DZ BANK, Landesbank Hesen-Thüringen Girozentrale and UniCredit Bank.

The rating agency Moody's gives Münchener Hypothekenbank's mortgage Pfandbriefe the highest rating of Aaa.