MünchenerHyp’s benchmark Mortgage Pfandbrief very well received by international investors

Münchener Hypothekenbank’s latest benchmark Mortgage Pfandbrief met exceptionally broad investor interest in the market.
International investors subscribed to about 40 percent of the € 500 million euro issue.

Interest from classical Pfandbrief investors like insurance companies and asset managers was also very high.

Bernhard Heinlein, member of MünchenerHyp’s Board of Management noted: “The return of classical investors shows that the Pfandbrief still enjoys great trust because of its safety and quality, even after the ECB announced that it would end its bond buying programme.”

The Mortgage Pfandbrief has a term of nine years and four months and carries a coupon of 0.625 percent. The issue was placed at 8 basis points below the mid-swap rate. The order book was closed after orders for more than € 1 billion were received.

The issue has attracted 52 orders from 12 countries. The regional focus was on Germany with 61 percent of the issue’s volume and followed by buyers in Great Britain, other European countries, as well as the Middle East. Banks were the primary buyer group and accounted for 48 percent followed by central banks, sovereign wealth funds, asset managers and insurance companies.

The transaction has been lead managed by Credit Suisse, Deutsche Bank, DZ Bank, HSBC and Nord LB.

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