NORD/LB issues subordinated bond with a volume of USD 500 million
NORD/LB Norddeutsche Landesbank has issued a subordinated bond with a volume of USD 500 million. The Tier 2 issue has a term of 10 years and was priced at the USD swap rate plus 333 basis points.
Following a roadshow in London, Geneva, Zurich and Singapore, the transaction was launched on Thursday last week. The bond was issued in the Regulation S format in accordance with the US Securities Act and offered to investors outside the United States of America. The 10 year fixed-rate bullet transaction with no termination option is the first USD bond of this type issued by a European issuer in this format.
The orderbook was six times oversubscribed after just two hours. The final orderbook for the bond comprised subscriptions from more than 200 investors.
“The placement of the subordinated bond with a volume of USD 500 million with international investors represents a major success for us,” explains Dr. Hinrich Holm, the member of the Managing Board who is responsible for the bank’s capital market business. “The very high demand, particularly from Asian investors, underlines NORD/LB’s good standing in the capital markets in Germany and abroad,” continued Holm.
The bond has a coupon of 6.25 per cent, settlement is 10 April 2014. The issue is rated “Ba1” by Moody’s.
NORD/LB Corporate Communication