06.07.2018

NORD/LB with bond issue for the European Union

NORD/LB executed a joint lead mandate in June for the first time for a syndicated European Union benchmark transaction. Set to mature in April 2033, the bond is targeted at institutional investors and was topped up by EUR 1.1 billion in this transaction. The total volume now stands at EUR 2.1 billion in all.

It is relatively seldom that the EU acts as independent issuer: including top-ups, this was only its third market action in the current year after just two in 2017.

This large-volume top-up was placed solidly in the market in a volatile market environment. The transaction's target volume was already attained at 11am on the day of issue, with the order books standing at EUR 1.25 billion at that point. Asset managers accounted for the largest portion (37 percent), followed by banks (30 percent) and pension funds and insurance companies (26 percent). The major share of the transaction was placed with investors from Germany and Austria (56 percent). Further shares went, for example, to France (22 percent) and Benelux (10 percent).

The issue is rated AAA (Fitch), Aaa (Moody's) and AA (Standard & Poor's). The proceeds of the transaction will be used towards refinancing the EFSM loans (EU bailout package) to Ireland and Portugal.


About NORD/LB

With total assets of EUR 165 billion, NORD/LB is among Germany's leading merchant banks. Its core business fields include structured financing in the energy and infrastructure sectors, ship and aircraft financing, corporate banking, commercial real estate financing, capital market business and the servicing of private and corporate customers, including private banking. The bank is headquartered in Hanover, Braunschweig and Magdeburg. NORD/LB also has branch operations in Bremen, Oldenburg, Hamburg, Schwerin, Düsseldorf, Munich und Stuttgart, and is represented outside of Germany by a Pfandbrief bank (NORD/LB Covered Bond Bank) in Luxembourg and branches in London, New York, Singapore and Shanghai.

Contact

NORD/LB Media and Communication
Friedrichswall 10
30159 Hannover


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