17. August 2023

For the fifth year in a row, Berlin Hyp reopens the covered bond market after the summer break

• Social Pfandbrief several times oversubscribed
• Fifth Pfandbrief issue in the 2023 benchmark format and at the same time the fourth ESG Pfandbrief already in the current year
• Investors from abroad subscribed to 46% of the Social Pfandbrief
• Around 21% placed within the Savings Banks Finance Group

The five-year bond with a volume of € 500 million carries a coupon of 3.375% and is rated Aaa by the rating agency Moody's. The yield at reoffer was 3.394%.

On Wednesday morning at around 8.45 a.m., the syndicate banks mandated by Berlin Hyp Commerzbank, HSBC, LBBW, Société Générale and UniCredit opened the order books at a spread of mid-swap +10 basis points. Hauck Aufhäuser Lampe Privatbank acted as co-lead manager.

At 9.40 a.m. the first book update took place. At that time, orders worth more than € 1 billion were already in the books. By the time of book closing at 10.45 a.m., orders accumulated to around € 1.6 billion, allowing the final reoffer spread to be fixed at mid-swap +6 basis points.

In total 88 investors participated in the Social Pfandbrief. With 54%, the majority of the bond was placed in Germany. Investors from abroad also showed considerable interest. 17% of the bond went to investors from the BeNeLux region, followed by the Nordic countries and Great Britain with 11% and 10% respectively. The largest investor group was made up of banks with 41%, funds 40% and insurance companies 8%. Savings banks and affiliated companies accounted for 21% of the issue.

"After publishing our Social Bond Framework in 2022, we are very pleased that we have already been able to issue our third Social Pfandbrief in such a short time with a high investor demand. Social bonds are an integral part of our ESG funding strategy and allow us to address specifically one of the key social challenges, the provision of affordable housing. We would like to thank all parties involved," says Teresa Dreo-Tempsch, who is responsible for capital market business on the Board of Management of Berlin Hyp.