NORD/LB successfully places two own issues on the capital market
The NORD/LB Group placed two large-volume own issues on the capital market this week. On Monday, NORD/LB subsidiary Deutsche Hypo issued a benchmark mortgage Pfandbrief with a ten-year term and a volume of EUR 625 million. The bond was primarily placed with institutional investors in Asia and Europe. It carries a coupon of 0.75% and the yield is 0.768%, which equates to a spread of 12bp over mid-swap. At around EUR 750 million, the order book was slightly oversubscribed.
On Tuesday, Luxembourg subsidiary NORD/LB Covered Bond Bank followed with a Lettre de Gage Publique, a covered bond issued under Luxembourg law. The bond has a term of five years and an issue volume of EUR 500 million. The coupon is 0.375% and the spread over mid-swap comes to 25bp. The order book was significantly oversubscribed at EUR 1.4 billion.
For both issues, NORD/LB was one of five joint lead managers in a banking syndicate.
Dr Hinrich Holm, Deputy Chairman of NORD/LB, who is responsible for the bank’s capital market business, commented: “We are delighted about the successful placement of both issues. The strong demand for these securities shows that institutional investors, in particular, are very interested in benchmark issues from NORD/LB Group.”
With total assets of € 155 billion, NORD/LB Norddeutsche Landesbank is one of Germany’s leading merchant banks. Its core business segments include structured finance in the energy and infrastructure sector, ship and aircraft finance, corporate client business, commercial real estate finance, capital market business and private and commercial client business including private banking. The Bank has headquarters in Hanover, Braunschweig and Magdeburg. NORD/LB also has branches in Bremen, Oldenburg, Hamburg, Schwerin, Düsseldorf, Munich and Stuttgart. Outside Germany, NORD/LB is active in Luxembourg with a covered bond bank (NORD/LB Covered Bond Bank) and also has offices in London, New York, Singapore and Shanghai.
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