NORD/LB with renewed senior benchmark bond issuance
NORD/LB issued an uncovered bearer bond with a volume of EUR 750 million and five-year maturity on Wednesday. The previous day had seen investors invited to submit their expressions of interest. Within just a few hours it became apparent that the bank could reckon with subscription orders in an amount far beyond the EUR 500 million mark, which is the minimum volume required for a benchmark issue.
This minimum volume was exceeded very soon after the opening of the subscription book. As expected, the largest part of the issue was placed in Germany, with a proportion of 85 percent.
The total issue volume was determined at EUR 750 million, with a coupon of 1 percent and thus 77 basis points above the relevant mid-swap rate. The securities will be admitted to trading on the stock exchanges in Hanover and Frankfurt. The rating agencies have rated this senior benchmark bond at A3 / A- (Moodys / Fitch).
Following its 3-year debut issuance in September 2015, NORD/LB is thus continuing its strategy of launching benchmarks with differing maturities, with the objective of undertaking liquid issues in USD as well in the medium term.
NORD/LB Corporate Communication