NORD/LB with successful issue of jumbo Pfandbrief
Big demand among German banks and funds
Today NORD/LB Norddeutsche Landesbank launched a public jumbo Pfandbrief with a volume of 1 billion euros and 10-year maturity. The spread is set at the mid-swap rate plus 20 basis points. The issue was placed by a syndicate comprising of NORD/LB, Barclays Capital, BayernLB, Natixis and UniCredit. The order book reached the target size within just a few hours and includes a total of 45 institutional investors, the majority of which are German banks and funds as well as central banks and insurance companies.
"At the present time there is no jumbo Pfandbrief in the market with a longer maturity than ours, and it prevailed against massive and significantly lower-priced competition from German sources as well as neighbouring European countries", explained Ulrike Brouzi, member of NORD/LB's Board of Management with responsibility for the Financial Markets business segment. Today's bond offering means that around 20 billion euros of new covered bond issues have now been placed on the European market as a whole since the beginning of the year - thus breaking the pre-crisis record from 2006. "The big demand for our jumbo underlines NORD/LB's good standing in the market", emphasized Brouzi.
NORD/LB's jumbo Pfandbrief carries a coupon of 3.25 percent, with a value date of 18 January 2011. The issue has an 'Aaa' rating from Moody's. It is NORD/LB's first public jumbo Pfandbrief since 2008.
NORD/LB Corporate Communication