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Geschäftsbericht 2015, englisch

münchener Hypothekenbank eg | annual report 2015 management report 24 Refinancing Overall conditions in the capital markets were again marked by the ECB’s third Covered Bond Purchase Programme (CBPP3) and the low interest rate environment. In addition, the first half of the year saw critical developments in Greece and the Ukraine. At this point in time the negative spreads also declined to the lowest values. During the past year we successfully placed four major volume Mortgage Pfandbriefe. All issues were placed by us in benchmark format and below the mid-swap rate. Each of the first three Pfand- briefe achieved the lowest spreads in their individual maturity segments in 2015. The first issue was a 10-year Mortgage Pfandbrief benchmark issue placed in March with a volume of € 750 million and a discount of 14 basis points below the mid-swap rate. We recorded 70 orders from 16 countries. Total orders for the issue amounted to over € 2 billion. This was followed in June with an 8-year Mortgage Pfandbrief that had a volume of € 750 million and was placed at a discount of 17 basis points below the mid-swap rate. The order book con- tained 46 orders totalling over € 1 billion from twelve countries. “Demand for our Pfandbriefe was again very good. We were able to successfully place four large-volume Mortgage Pfandbriefe.” In August we placed a Mortgage Pfandbrief with a term slightly longer than 5 years. This issue also had a volume of € 750 million. Orders were received from 49 investors from 14 countries to pur- chase more than € 1 billion of the new issue. Demand for these three issues was so high that we increased the volume of each of them by € 250 million during the book-building phase to accommodate demand shown by institutional investors as well as the CBPP3. We closed out our series of benchmark issues in October with a 6-year Mortgage Pfandbrief that had a volume of € 500 million. The € 750 million in orders taken reflected a slight saturation of the market as we received 32 orders from five countries. On average German investors represented 73 percent of all the bids submitted for the benchmark issues placed in 2015. The re- maining shares were held by other European countries as well as Asian nations. The biggest investor groups consisted of banks, central banks, funds, and insurance companies. Among our maturing issues in 2015 was, in particular, a Jumbo Mortgage Pfandbrief with a volume of over € 1.5 billion that matured in June. Our issuing work – characterised by competence, efficiency and timing – was honoured with an award in December 2015: Capital Market Data Network (CMDportal), an international financial mar- ket service network, awarded MünchenerHyp the CMD Prize for “Best Covered Bond Issuer”. In addition we also defended our first place ranking in the Euromoney, a trade magazine, “Best Borrowers Survey 2015” in the category “Covered Bonds & Pfandbriefe”. The vote is based on an international survey taken of major banking clients. We broke new ground with our uncovered refinancing activities as we issued two large volume bonds via investment banks we had mandated for this purpose. The first bond had a volume of over € 300 million and a 7-year term while the other was a 5-year bond with a volume of over € 250 million. Thanks to an innovative new product that we jointly developed with an investment bank, we were able to win corporate clients as well as new customers for MünchenerHyp. Banks from within the Cooperative Financial Net- work were also well represented as buyers. During the year under review we obtained a total of € 7.9 billion in refinancing funds, of which Mortgage Pfandbriefe accounted for € 6.1 billion, and € 1.8 billion generated by uncovered bonds. Due to the direction of MünchenerHyp’s business strategy we only issued a very limited volume of Public Pfandbriefe.

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