Historically low interest rate for 20-year MünchenerHyp Mortgage Pfandbrief
Never before has a 20-year Mortgage Pfandbrief achieved a lower coupon. Münchener Hypothekenbank eG (MünchenerHyp) issued a benchmark mortgage Pfandbrief at an interest rate of 0.01 percent.
The volume of the issue amounts to € 500 million. After only 50 minutes, subscriptions of more than € 1 billion were already available – that reflects a strong investor demand. Shortly afterwards, the order book was closed at € 1.4 billion. The Mortgage Pfandbrief was launched at a price of 2 basis points above mid swap. This is the lowest spread achieved internationally in 2020 for euro-denominated Pfandbriefe and covered bonds with long maturities.
"The excellent conditions of this Mortgage Pfandbrief are a strong sign of confidence of our investors in difficult times. This enables us to attractively refinance our continuing good new business," said Dr. Louis Hagen, Chairman of the Board of Management of MünchenerHyp.
A total of 49 orders from 9 countries were placed. Germany was the regional focus, accounting for around 75 percent of the issue volume. The largest group of investors were banks with 35 percent of the issue volume, followed by asset managers and central banks.
The transaction was lead managed by Commerzbank, Deka Bank, DZ Bank, NatWest and NordLB.
The rating agency Moody's is giving MünchenerHyp's mortgage Pfandbriefe the highest rating of Aaa.