Berlin Hyp opens Pfandbrief market in 2023 with ESG dual tranche

On Tuesday morning at around 8.45 a.m., the syndicate banks mandated by Berlin Hyp Barclays, Crédit Agricole, DekaBank (no books), Erste Bank, LBBW, Natixis and UniCredit opened the order books at a spread of mid-swap flat for the three-year Social Pfandbrief and mid-swap +13 basis points for the ten-year Green Pfandbrief. Hauck Aufhäuser Lampe Privatbank acted as co-lead manager.

The first book update took place at 9.45 a.m. At this time, orders worth more than € 2 billion were in the books, with the focus concentrated on the long three-year Pfandbrief at around € 1.4 billion for term-related reasons. At 10.30 a.m., Berlin Hyp fixed the reoffer spreads at mid-swap  -4 and mid-swap +11 basis points. By the time the books closed at 10.45 a.m., the combined order book had grown to around € 3.6 billion. Thereof, € 2.5 billion were placed in the Social Pfandbrief and € 1.1 billion in the ten-year Green Pfandbrief.

In total, more than 170 investors participated in the Pfandbriefe. Around two thirds of the bonds were placed in Germany. Abroad, investors from the Netherlands and Luxembourg in particular showed interest with 11%. The largest investor group was made up of banks with 44%, followed by funds (21%) and central banks and public institutions (20%). Savings banks accounted for 20% of the issues.

"We are very pleased that we were able to successfully place our first dual tranche at the beginning of the year. We have structured both Pfandbriefe as ESG bonds, underlining Berlin Hyp's strategic focus. The considerable oversubscription and, in particular, the pleasingly strong demand in the ten-year maturity spectrum are considered as a vote of confidence in Berlin Hyp," says Maria Teresa Dreo-Tempsch, who is responsible for capital market business on the Board of Management of Berlin Hyp.