Münchener Hypothekenbank's green benchmark Mortgage Pfandbrief inspires investors

Münchener Hypothekenbank's latest issue of a green benchmark Mortgage Pfandbrief has met with great and broad investor interest.

The Pfandbrief has a volume of EUR 500 million and a term of five years. The coupon is 3.25 percent. The issue was launched at a price of 19 basis points over mid-swap. The order book was closed at over EUR 1.5 billion.

"The exceptionally strong investor interest shows that in the current market environment security and quality are in demand above all. These are characteristics that distinguish Münchener Hypothekenbank's Pfandbriefe," said Dr. Holger Horn, Chairman of the Münchener Hypothekenbank's Board of Management.

The Green Mortgage Pfandbrief is based on Münchener Hypothekenbank's Green Bond Framework, which complies with the ICMA Green Bond Principles and meets the minimum standards of the Association of German Pfandbrief Banks (vdp) for Green Pfandbriefe. The issue's cover pool is made up of private and commercial properties that meet the ecological criteria of the Green Bond Framework. Private residential properties financed with Münchener Hypothekenbank's Green Loan form a significant part of the cover pool. In this way, the Bank promotes energy-efficient and environmentally friendly construction and living.

A total of 83 orders were placed from ten countries. Germany was the regional focus, accounting for 67 percent of the issuance volume. This was followed by investors from the Benelux countries, Scandinavia and France. Banks were the largest investor group, accounting for 56 percent of the issuance volume, followed by funds, central banks and agencies.

The transaction was lead managed by Commerzbank AG, DekaBank Deutsche Girozentrale, DZ BANK AG, Landesbank Hessen-Thüringen Girozentrale and Société Générale.

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