pbb Deutsche Pfandbriefbank successfully issued a USD denominated Mortgage Pfandbrief issue on Tuesday, with a total volume placed of USD 600 million. The Mortgage Pfandbrief has a term of 3 years and an annual coupon of 2.25 percent. pbb pays a premium of 55 basis points above the current reference swaps rate. Based on the re-offer price of 99.827 percent, the Pfandbrief has a 2.31 percent yield.
The issue was very well received by the market, with the order book clearly oversubscribed.
Investors from Germany accounted for the majority of allocations, followed by Nordics and Central and Eastern Europe (CEE). The issue was managed by a syndicate comprising BayernLB, Citibank, Deutsche Bank, DZ BANK, and Goldman Sachs Int’l. as Joint Bookrunners.
The current issue follows a series of successful pbb funding transactions in non-euro currencies. At the beginning of the year, the bank increased an existing US dollar Public Sector Pfandbrief issue by USD100 million, to USD600 million. In addition, pbb issued GBP 300 million Mortgage Pfandbriefe. Year-to-date funding via Pfandbriefe denominated in Swedish krona has already exceeded SEK2.5 billion. Overall, pbb has raised €3.6 billion in long-term funding on the market in 2017 to date.
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