Press release

MünchenerHyp’s mortgage Pfandbrief benchmark with new tenor record – tremendous investor demand: bond six times oversubscribed


Münchener Hypothekenbank eG (MünchenerHyp) has issued today a Pfandbrief Benchmark of 500 mn Euros with a 20-years tenor.

This is the longest ever benchmark Pfandbrief issued in Germany.

The issue has attracted an enormous investor demand. The order book has closed beyond 3 bn Euros after just one hour. The coupon has been fixed at 1.0%. The issue spread is 7 basis points above the swap curve.

“Today’s benchmark Pfandbrief with record tenor of 20 years is a perfect match with our maturity profile on the asset side. A match between refinancing and the asset maturity structure is of high importance to MünchenerHyp. We appreciate the immense demand from the investor base. At the same moment it is a formidable verification of our business model and funding strategy “, said Dr. Louis Hagen, chairman of the board of management of MünchenerHyp.

The order book received nearly 120 orders from 16 different countries. Regional focus was Germany with 51 percent of the issuance volume. Biggest investor group were banks with 61 percent of the issue followed by 29 percent from asset manager and funds. “Remarkably high amount of orders with sizeable volume within a little while were leading to a nearly immediate oversubscription“, added Martin Schmid, responsible funding manager at MünchenerHyp.

The transaction has been lead managed by Deka Bank, DZ Bank, LBBW, Société Générale, UBS and UniCredit.

The rating agency Moody’s has given its highest rating of Aaa to MünchenerHyp’s Mortgage Pfandbriefe.