Very strong demand for MünchenerHyp’s second Jumbo Mortgage Pfandbrief in 2022

Following a summer pause, Münchener Hypothekenbank eG (MünchenerHyp) was very successful in the covered bond market with a Jumbo Mortgage Pfandbrief issue with a volume of 1 billion euros and a term of 10 years.

Investor demand was unusually strong and the volume of 1 billion euros was recorded in the order book after only 40 minutes. The order book was closed about two hours after opening with over 2.1 billion euros worth of orders received. 

The issue carries a coupon of 1.875 percent and was placed 5 basis points over the mid-swap rate.  

"The high attractiveness of the yield vis-à-vis government bonds is currently reinforcing demand for Pfandbriefe. At the same time, the great interest shown by investors impressively confirms our refinancing strategy", said Dr. Louis Hagen, CEO of MünchenerHyp. 

The issue also saw great demand from international investors. A total of 73 orders from 13 countries were placed with Germany representing the main region with 56 percent of the issue’s volume followed by buyers in Scandinavia and the Benelux countries. Banks were the primary group of investors purchasing 54 percent of the issue’s volume followed by central banks with 25 percent. 

The transaction was lead managed by Citigroup, Credit Agricole CIB, Deka Bank, DZ Bank, Landesbank Baden-Württemberg and UniCredit.

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