Enthusiastic Demand Seen for MünchenerHyp’s Benchmark Mortgage Pfandbrief
Münchener Hypothekenbank eG’s first benchmark issue of the year met with enthusiastic investor demand.
The issue with a volume of € 750 million was oversubscribed by almost three times as orders for € 2 billion were received within a short period. The Mortgage Pfandbrief has a term of 10 years and achieved a price of 14 basis points below the mid-swap rate – this is the highest discount for risk ever in this maturity segment. The Pfandbrief carries a coupon of 0.5 percent.
“The unusually strong investor interest for this issue shows that safety and quality, above all else, are in demand in the current interest rate environment. And these are the characteristics that distinguish MünchenerHyp’s Pfandbriefe“, said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management.
The investor group was broadly diversified as 70 orders from 16 countries were received. As expected, German investors represented the vast majority of incoming orders and accounted for 70 percent of the issue’s volume. Buyers were primarily banks as they subscribed to about half of the issue’s volume followed by central banks (32.9 percent), investment funds and insurance companies (18.5 percent).
The transaction was accompanied by Crédit Agricole, DZ BANK, HSBC and LBBW. The rating agency Moody’s has given its highest rating of Aaa to MünchenerHyp’s Mortgage Pfandbriefe.