German bank Deutsche Hypo has placed its first ‘green’ Pfandbrief, raising €500 million through the issue of a six-year bond with a coupon of 0.125 percent.
The issue was more than two times oversubscribed within an offer period of about one hour, during which more than 50 orders were received.
The main buyers were asset managers, foundations, private banks, co-operative and savings lenders, central banks and state-near investors, the bank said. “The share of foreign investors – even beyond Europe – was very high for this green Pfandbrief,” it added.
Deutsche Hypo noted it could have tightened the bond spread of minus 14 basis points on the basis of the order book. In view of the investor interest and with the expectation of a good secondary market performance, the bank intentionally abstained from this, it said.
A bank consortium formed by ABN AMRO, Crédit Agricole, DZ BANK, NORD/LB and UniCredit, supported the German bank in the issue.
A month earlier, Berlin Hyp issued its second unsecured ‘green’ Pfandbrief, representing the German bank’s fourth green bond issue since 2015, with a total volume of €2 billion. The senior unsecured bond had an issue volume of €500 million and a term of 10 years, with a 1.125 percent coupon.