MünchenerHyp with another long-dated Pfandbrief record spread

Münchener Hypothekenbank eG (MünchenerHyp) has issued a mortgage Pfandbrief with a maturity of 15 years at a record spread of minus 3 basis points over mid-swap. This is the lowest spread for a Pfandbrief denominated in euros with this maturity in more than 20 years. 

The volume of the issue is 500 million euros. The coupon is 0.25 percent. Investor demand was so strong that the order book closed after two hours at 1.35 billion euros.

"We are pleased to have achieved another record spread with our second benchmark mortgage Pfandbrief this year. We have thus been able to demonstrate our strength as an issuer in a very quiet market environment, while at the same time making an attractive offer to investors," said Dr Louis Hagen, Chairman of MünchenerHyp's Board of Management.

A total of 44 orders were placed from 5 countries. The regional focus was Germany, which counted for around 91 percent of the issue volume. The largest investor group were banks with about 37 percent of the issue volume, followed by insurance companies with 32 percent and central banks, which acquired about 16 percent of the issue volume with 81 million euros.

The transaction was lead managed by Barclays, BayernLB, Commerzbank, DZ BANK and Nord/LB.

Rating agency Moody's gives MünchenerHyp mortgage Pfandbriefe its top rating of Aaa.