MünchenerHyp successfully places € 750 million Mortgage Pfandbrief

Münchener Hypothekenbank eG announced that it successfully issued a long 5-year Mortgage Pfandbrief with a volume of € 750 million.

Heavy demand was noted for the benchmark issue that carries a coupon of 0.25 percent. The order book was closed soon after opening when orders for about € 1 billion had been received. The Pfandbrief was priced at 17 basis points below the mid-swap rate, which is the highest discount for risk recorded thus far this year for Pfandbriefe and Covered Bonds.

“Within just a few weeks we were once again able to successfully issue another major volume Mortgage Pfandbrief. This reflects the Pfandbrief‘s strength as a refinancing instrument and is also a nice confirmation of our placement power“, said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management.

A total of 49 orders from 14 countries were received for the issue with German investors accounting for about 70 percent of the volume sold, followed by investors from the Nordic countries. In terms of investor category, banks and central banks accounted for 87 percent of the volume issued.

The transaction was accompanied by Commerzbank, DZ BANK, Nord/LB and WGZ Bank.

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