MünchenerHyp successfully issues benchmark Mortgage Pfandbrief in lively market environment

Münchener Hypothekenbank eG successfully placed its first large-volume Mortgage Pfandbrief of 2014 in the capital market today.

The 10-year benchmark issue has a volume of € 500 million. Heavy investor interest led to a price of just 7 basis points above the mid-swap rate for the issue. This is the lowest premium paid for 10-year Pfandbriefe to date this year in the primary market.

“Even though there was a surprisingly high volume of new issue activity in the European bond market today, we were successful thanks to the solid reputation we have among investors,” said  Rafael Scholz, MünchenerHyp’s Head of Treasury.

Banks took 48 percent of the issuance volume for the largest share among investors followed by central banks with 27 percent and funds with 23 percent. As expected, the vast majority (80 percent) of the issuance volume was placed in Germany, followed by Austria and Switzerland (together 6.4 percent), Scandinavian countries (6 percent), Benelux countries (4 percent) and Asian countries (3.6 percent).

The transaction was accompanied by BayernLB, DZ BANK, Helaba, HSBC, UniCredit and WGZ Bank. The rating agency Moody’s has given its highest rating of Aaa to MünchenerHyp’s Mortgage Pfandbriefe.