DZ HYP successfully issued a benchmark mortgage Pfandbrief on Thursday, 3 September 2026. The issue volume amounted to 500 million euros. The transaction took place in a market environment characterised by an increased number of issues. The new benchmark bond has a maturity until 30 June 2031 and carries a coupon of 3.25 per cent. This placement underscores DZ HYP's ongoing ability to refinance itself in the capital market.
The issue was supported by a broad consortium. The banks involved included Crédit Agricole Corporate and Investment Bank, Deutsche Bank AG, DZ BANK AG, Landesbank Hessen-Thüringen Girozentrale, Standard Chartered Bank AG, and Swedbank AB. This structure ensured efficient processing and broad outreach to potential investors, which is crucial for the success of such a placement.
High Demand and International Investor Base
Following the initial announcement on the day prior to the placement, the order book was opened on Thursday morning. The initial spread was set at mid-swap plus 20 basis points against the 6-month Euribor. Demand exceeded expectations; the allocable order book volume reached 1.9 billion euros, distributed across 73 individual orders. This led to an adjustment of the final spread, which was fixed at mid-swap plus 13 basis points, reflecting the high attractiveness of the issue.
The geographical distribution of investors showed a clear focus on the German-speaking region. Investors from Germany, Austria, and Switzerland subscribed to 47 per cent of the allocated order volume. Additionally, investors from Southern Europe accounted for 20 per cent, Denmark and Norway for 11 per cent, and Africa for 10 per cent. The Netherlands and Luxembourg contributed 6 per cent, while other regions took the remaining 6 per cent of the volume. This diversification of the investor base demonstrates DZ HYP's global reach in the capital market.
Structure of Investor Types
The composition of investor types illustrated a balanced interest from various institutional investors. Banks represented the largest share of the order volume at 45 per cent, underscoring their role as important partners for Pfandbrief issues. Asset managers and funds followed with a share of 28 per cent. Central banks and public institutions participated with 17 per cent. Insurance companies and pension funds accounted for the remaining 10 per cent. This distribution demonstrates the broad acceptance of the mortgage Pfandbrief as an investment option across different institutional categories.
