Short maturity, strong demand – MünchenerHyp issues € 700 million benchmark mortgage Pfandbrief

Münchener Hypothekenbank eG (MünchenerHyp) has successfully issued a benchmark Mortgage Pfandbrief with a volume of € 700 million and a maturity of just under 5 years.

The Pfandbrief met with very strong national and international demand. The order book was closed after receiving orders of just under 900 million euros. The issue carries a coupon of 3.0 percent and was placed at 1 basis point above the mid-swap rate. 

"In view of the unbroken busy activity in the primary market the capital market environment for this issue was very demanding. For this reason we are all the more pleased about the good demand and the success of our Pfandbrief. The issue once again underlines the high quality of our Pfandbriefe and our good standing in the capital market", said Dr. Louis Hagen, CEO MünchenerHyp.

“Although there was a high level of new issue activity in the European bond market we were able to achieve success in this market thanks to our high reputation among investors”, added Martin Schmid, Head of Strategic Funding and ALM at MünchenerHyp.

A total of 56 Orders from seven countries were received with Germany representing the main region with 75.6 percent of the issue’s volume followed by investors from Austria and Switzerland (11.4 percent) as well as Scandinavia (5.7 percent). Banks were the primary investor group and accounted for 46.6 percent of the issue’s volume followed by central banks (34.1 percent) and asset managers (19.3 percent).

The transaction was lead managed by Credit Suisse, DZ BANK, Landesbank Hessen-Thüringen Girozentrale, NORD/LB and UBS.

The rating agency Moody's gives MünchenerHyp mortgage Pfandbriefe its highest rating of Aaa.