HAMBURG/KIEL- HSH Nordbank is continuing its Pfandbrief strategy with the successful issue of a public-sector Pfandbrief with a three-year term. The benchmark bond is in the amount of EUR 500 million and is backed by loans to the public sector. Rating agency Moody’s has given the Pfandbrief a rating of “Aa2”.
The order book was substantially oversubscribed with a volume of more than EUR 900 million and was closed after a short time. Alongside institutional investors based in Germany, foreign investors, who subscribed to more than 30 percent, also showed interest in the issue. It is a fixed-income Pfandbrief with an annual coupon of 0.1 percent. Alongside HSH Nordbank, Commerzbank, Natixis, NatWest Markets and UniCredit participated in the transaction.
“The three-year term has met with high investor demand, which moreover constitutes a very good addition to the maturities of our outstanding Pfandbriefs”, said Mark Bussmann, Head of Treasury & Markets at HSH Nordbank. “HSH Nordbank is showing itself to be a reliable partner in the Pfandbrief market also in the wake of the privatisation phase, ensuring a corresponding continuity.”
HSH Nordbank uses Pfandbriefs as a strategic instrument in refinancing. The target group are institutional investors based both in and outside Germany. In 2016, HSH Nordbank placed mortgage-covered and public-sector Pfandbriefs in benchmark format with a total volume of EUR 1.35 billion.