The three-year mortgage Pfandbrief with a volume of GBP 200 million has been issued as a floating rate note with a coupon of 3 months GBP-Libor + 20bp (WKN MHB214 / ISIN code DE000MHB2143). 

The rating agency Moody’s will give the Pfandbrief its highest rating of Aaa.

„This form of funding is an important element for our mortgage loan business in the United Kingdom“, noted Bernhard Heinlein, Member of the Board of Management of MünchenerHyp and responsible for sales.

Barclays, Goldman Sachs and Nomura lead managed the bond. Several investor meetings in UK have taken place in preparation of the issue to broaden the investor base and to provide a basis for a successful debut.

UK investors acquired nearly 60 percent of the mortgage Pfandbrief, followed by Germany, Switzerland and Asia. Buyers of the bond were banks and funds with nearly 40 percent each besides supranational institutions and central banks.

“We made good progress on our course of growth”, stated Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management, during today’s annual results press conference. MünchenerHyp was able to further increase its new business results in the area of property financing, as well as expand its portfolio of mortgage loans. The Bank’s net interest income figure improved substantially. In addition, the Bank was able to obtain refinancing at very good conditions from the capital markets.

New business posted for residential and commercial property financing increased by about 7 percent to € 3.6 billion, of which residential property financing alone accounted for almost € 3 billion. The Bank’s biggest gains were recorded in its business with its partner banks within the Cooperative Financial Network, especially the Volksbanken and Raiffeisenbanken. The volume of brokered lending commitments grew by 25 percent. Newly approved loans for commercial property rose by 14 percent to € 0.7 billion, of which about two-thirds were for loans within Germany.

Despite the great volatility seen in the capital markets, MünchenerHyp’s Pfandbriefe met with very great demand. “Our issues generated attention in the markets,” noted Dr. Louis Hagen. The Bank was able to place its Mortgage and Public Pfandbriefe with low risk premiums, which in some cases were at historic low levels. MünchenerHyp received the renowned “Euro Deal of the Year” award for one of its large volume Pfandbrief issues: a Jumbo Mortgage Pfandbrief with a ten-year term. Institutions within the Cooperative Financial Network were once again the Bank’s most important partners in the uncovered refinancing segment.  

The successful new business results also contributed towards net interest income rising by almost 10 percent to € 129 million. Administrative expenses increased by about 4 percent to € 65.5 million, and were primarily due to additional capacity needed to handle the high volume of new business. The Bank’s risk situation is very satisfactory and further improved in the previous year.  Results from operations after making provisions for risk amounted to € 9.8 million. After transfers to the Fund for General Banking Risks, annual net income for the year amounted to € 5.4 million. The Bank will pay a dividend of 3.25 percent, or € 2.28 for each share.

Total assets declined slightly to € 36.6 billion. The portfolio of mortgage loans rose notably by 8 percent to about € 21 billion. The vast majority of these loans were for domestic financing transactions. The portfolio of public-sector and banks loans contracted further from € 13.3 billion to € 12.1 billion.

At the end of 2012 the core capital ratio rose to 9.1 percent (previous year: 8.9 percent) and the total capital ratio increased to 13.5 percent (previous year: 13.3 percent).

“This year we once again want to grow sustainably and prudently in our core business areas of residential and commercial property financing. In view of the favourable market environment, we are confident that we will achieve this again”, said Dr. Louis Hagen. At the same time MünchenerHyp is striving to further expand its portfolio of mortgage loans. Based on the premise that the European sovereign debt crisis will not lead to any unexpected burdens, the Bank also anticipates that it will post higher net income for the year.

The issuer has launched an eight-year mortgage Pfandbrief with a volume of EUR 750 million.

The bond has found good demand with 66 orders spread into 9 countries. Nearly half of the issue has been placed outside Germany. The mortgage Pfandbrief with a coupon of 1,375% will mature on April 16th, 2021. The price has been fixed at midswap + 3bp.

“Despite the low yield environment we have given proof of the quality of our Pfandbriefe”, noted Dr. Louis Hagen, Spokesman of the Board of Management of MünchenerHyp.

BayernLB, DZ Bank, HSBC, LBBW, UniCredit and WGZ Bank lead managed the transaction. The rating agency Moody’s will give its highest rating of Aaa to MünchenerHyp’s mortgage Pfandbrief.

MünchenerHyp will issue uncovered promissory notes with terms of up to one year within the framework of its CD programme, which has a volume of 2 billion euros. “This step marks an expansion of our product range for investors and strengthens MünchenerHyp’s presence in the international capital markets,” stated Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management.

BNP Paribas is the arranger of the CD programme. Placements will also be made by BNP Paribas, as well as Société Générale, Crédit Agricole, and MünchenerHyp itself.

Certificats de dépôt are money market securities that are regulated by the Banque de France, and have a very good reputation in the capital markets. They can be traded on the secondary market. MünchenerHyp will become one of the few German banks that have issued Certificats de dépôt.

The members of Münchener Hypothekenbank’s Board of Management are: Dr. Louis Hagen, Spokesman, Bernhard Heinlein, and Michael Jung.