Content area
Full Text
Rating: -/-/AA-
Amount: Eu750m
Maturity: 3 February 2015
Issue/re-offer price: 99.879
Coupon: 3.5%
Spread at re-offer: 95bp over mid-swaps
Launched: Thursday 27 January
Payment date: 3 February
Joint books: DZ Bank, Landesbank Berlin, LBBW, UniCredit
Bookrunners' comment:
There have been no German banks in the market for a long time. The market is looking for a slightly better risk after some single-A borrowers recently. This is a double-A rated borrower which hasn't been active in senior for a long time. The last issue they did is almost due. That was a Eu600m two year fixed rate note sold in August 2009. That was their last benchmark in senior unsecured. So this deal was essentially their inaugural post-crisis deal.
The issuer is a daughter of Landesbank Berlin, and they do covered bonds. Some part of the business required senior unsecured funding. Through the crisis they have issued a lot of private placements. This year they thought the market looked better and they would have good demand, so they approached us regarding a benchmark transaction.
We have been working on this for quite a while, working out the right spread and timing for the deal.
Because Berlin Hyp belongs to the Landesbank sector,...