Pbb Deutsche Pfandbriefbank has issued a US dollar-denominated mortgage Pfandbrief, with a total volume placed of $600 million.
The covered bond has a term of three years and carries an annual coupon of 2.25 percent. Pbb pays a premium of 55 basis points above the current reference swaps rate. The bank said that, based on a re-offer price of 99.827 percent, the bond has a 2.31 percent yield.
German investors bought the majority of the bonds, followed by investors from the Nordics and central and eastern Europe. “The issue was very well received by the market, with the order book clearly oversubscribed,” the bank said in a statement.
The current issue follows a number of pbb funding transactions in non-euro currencies. In January, the bank increased an existing US dollar public sector Pfandbrief issue by $100 million, to $600 million. In addition, pbb issued a £300 million mortgage Pfandbriefe. Year-to-date funding via Pfandbriefe denominated in Swedish krona has already exceeded SEK2.5 billion. Overall, pbb has raised €3.6 billion in long-term funding on the market in 2017 to date.
The latest issue was managed by a syndicate comprising BayernLB, Citibank, Deutsche Bank, DZ BANK, and Goldman Sachs International as joint book-runners.