MünchenerHyp issues green Jumbo Pfandbrief with a volume of 1 billion euros
Münchener Hypothekenbank eG (MünchenerHyp) today issued a green mortgage Pfandbrief with a volume of € 1 billion. Demand for the Jumbo Pfandbrief was so strong that the order book closed after around two hours at a volume of over €2.7 billion. Around a third of the issue volume was subscribed by investors specialising in green and sustainable investments.
"As part of our ESG strategy, we want to embed sustainability even more deeply in MünchenerHyp's core business and further expand our range of sustainable real estate financing. In line with the circular economy concept, this includes sustainable refinancing through green Pfandbriefe," said Dr Louis Hagen, Chairman of MünchenerHyp's Board of Management.
MünchenerHyp issued the world's first sustainable Pfandbrief in 2014. It is thus considered a pioneer for sustainable refinancing via Pfandbriefe and other green bonds. The green mortgage Pfandbrief issued today is based on MünchenerHyp's Green Bond Framework, which complies with the ICMA Green Bond Principles and meets the vdp's minimum standards for green Pfandbriefe.
The issue's cover pool consissts of private and commercial properties that meet the ecological criteria of the Green Bond Framework. Private residential properties financed with MünchenerHyp's Green Loan make up a significant part of this. In this way, the property bank promotes energy-efficient and environmentally friendly construction and housing.
The term of the green Pfandbrief is 7 years and 10 months. The spread is 2 basis points above midswap. The coupon rate is 1.25 percent.
"Years of intensive investor work, also with a focus on sustainability, have clearly contributed to the great success of the green Pfandbrief," said Claudia Bärdges-Koch, Head of Debt Investor Relations at MünchenerHyp
The issue also attracted considerable international interest. A total of 85 orders were placed from 17 countries. The regional focus was Germany, which accounted for around 65 percent of the issue volume. This was followed by investors from the Scandinavian countries and Benelux. The largest group of investors were banks with around 50 percent of the issue volume, followed by central banks with around 25 percent and funds, which acquired around 20 percent of the issue volume.
The transaction was lead managed by Commerzbank, Deutsche Bank, DZ BANK, Landesbank Hessen-Thüringen, Natixis, NORD/LB.
The rating agency Moody's gives MünchenerHyp mortgage Pfandbriefe its highest rating of Aaa.
The ISS ESG agency has awarded MünchenerHyp a sustainability rating of C+. This makes the bank one of the best-rated institutions in the "Financials/Mortgage & Public Sector" category and gives it prime status.