MünchenerHyp has reopened the covered bond market with a benchmark Mortgage Pfandbrief

Münchener Hypothekenbank eG has set an end to this year’s summer break while issuing its second Mortgage Pfandbrief in benchmark size.

The issue met a huge investor demand so that the bank had decided to increase the volume to € 750 million. The order book had exceeded € 1 billion in size.

The maturity of the Mortgage Pfandbrief is a long 9 years and has a coupon of 0.625 percent. The bond was priced at midswap minus 13 basis points.

The issue has attracted 64 orders from 10 countries. The regional focus was clearly on Germany with 85 percent followed by investors from Asia, Middle East, Austria and Switzerland. The biggest investor group were banks with a share of 41 percent nearly at the same level with central banks and sovereign wealth funds.

"The big investor demand reflects the high liquidity in the covered bond market with a clear advantage for a well-known investor like MünchenerHyp", said Bernhard Heinlein, member of the Board of Management at Münchener Hypothekenbank.

The transaction has been lead managed by BayernLB, Deka Bank, DZ BANK and UniCredit. Bankhaus Lampe had a Co-Lead.

The rating agency Moody’s has given its highest rating of Aaa to MünchenerHyp’s Mortgage Pfandbriefe.