MünchenerHyp: Record issue of a long-dated Pfandbrief

Münchener Hypothekenbank eG (MünchenerHyp) has achieved a record spread with its first benchmark issue in the new year. The property bank issued a mortgage Pfandbrief with a maturity of almost 19 years at a spread of 1 basis point over mid-swap. This is the lowest price premium for a Pfandbrief in Euro with a maturity of more than 15 years since the outbreak of the financial market crisis in 2008.

The volume of the issue is 500 million euros. The coupon is 0.01 percent. Investor demand was very brisk, so that the order book closed after two hours at 875 million euros.

"With this issue, we were once again able to demonstrate MünchenerHyp's refinancing strength for long-dated Pfandbriefe," said Dr. Louis Hagen, Chairman of MünchenerHyp's Board of Management.

A total of 38 orders were placed from 5 countries. The regional focus was Germany, which accounted for around 74 percent of the issuance volume. The largest investor group were banks with around 50 percent of the volume, followed by insurance companies and central banks. 

"This bond, together with our two long-dated 2020 issues, offers our investors a unique investment opportunity in German Pfandbriefe in a benchmark format in this maturity segment," said Martin Schmid, Head of Strategic Funding and ALM at MünchenerHyp.

Credit Suisse, DZ Bank, Helaba, LBBW and UBS lead managed the transaction.

The rating agency Moody's rates MünchenerHyp's mortgage Pfandbriefe with the highest rating Aaa.