The term of the 750 million euro public sector covered bond is 3.25 years. The bond will therefore mature in May 2027. The expected Moody's rating of the Pfandbrief is Aa1. The Pfandbrief coupon is 2.875%, which corresponds to a premium of 20 basis points over the swap centre. With a denomination of 1,000, the Pfandbrief is also suitable for private investors.
The order book was opened at 8.50 a.m. and closed again at 11.25 a.m. thanks to strong investor demand. With 64 orders totalling just under 2.2 billion euros, the bond was significantly oversubscribed. The paper was primarily subscribed by German investors (71 per cent). Just under 30 per cent were placed with international investors. The issue was primarily sought after by banks and asset managers.
BayernLB, ING, Natixis, UniCredit and NORD/LB acted as joint lead managers for the transaction.
NORD/LB has both a programme for the issuance of mortgage Pfandbriefe and a programme for the placement of public sector Pfandbriefe. NORD/LB is one of the largest German Pfandbrief issuers in both sub-segments. The transaction was NORD/LB's second benchmark issue in the current year. In the first week of January, the bank issued a green mortgage Pfandbrief for 500 million euros.
NORD/LB Norddeutsche Landesbank is one of the leading German commercial banks. The core business segments include business with corporate customers, private and commercial customers including private banking as well as special finance in the energy and infrastructure sector, aircraft finance and commercial real estate finance. The bank is headquartered in Hanover, Brunswick and Magdeburg and has branches in Oldenburg, Hamburg, Schwerin, Düsseldorf and Munich. Outside Germany NORD/LB is represented by a Pfandbrief Bank (NORD/LB Covered Bond Bank) in Luxembourg and branches in London, New York and Singapore.