MünchenerHyp’s kicks off the fourth quarter primary market with a benchmark Mortgage Pfandbrief

Münchener Hypothekenbank eG successfully placed a 500 million euro Mortgage Pfandbrief.

The new issue was the bank’s fourth benchmark issue in the current year. “The issue faced a very demanding capital market environment as the primary market was highly active in September. This is why we are even more pleased that the issue was a success, which once again underlines the high quality of MünchenerHyp’s Pfandbriefe“, said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management.

The order book was closed after receiving orders worth 750 million euros. The Mortgage Pfandbrief carries a coupon of 0.375 percent and a term of slightly over 6 years. The Pfandbrief was priced at 10 basis points below the mid-swap rate.

A total of 32 orders from 5 countries were received for the issue with German investors accounting for about 85 percent of the volume sold, followed by investors from the Nordic countries. In terms of investor category, banks and central banks accounted for more than 80 percent of the volume issued.

The transaction was accompanied by BayernLB, BNP Paribas, Citi and DZ Bank. The rating agency Moody’s has given its highest rating of Aaa to MünchenerHyp’s Mortgage Pfandbriefe.