Your strong partner.

Close. Together. Successful.

As a leading real estate bank in Germany, DZ HYP offers comprehensive financing solutions for your real estate project – whether for commercial, housing, municipal or private investment.

Home > About us > Media > News Archive > News
Julia Jordan

Julia Jordan

Head of Communications
julia.jordan@dzhyp.de

DZ HYP successfully places its first benchmark bond

12.11.2018, 7-year, €1 billion issue

Despite of the currently challenging market environment, DZ HYP has successfully placed its first benchmark bond issue on the capital market. The Bank's roadshow, held during September and October in preparation for the issue, was a key success factor in ensuring significant investor interest: besides large German cities, this also covered major European financial centres (London, Amsterdam, Vienna, Paris, as well as cities in the Benelux countries and in Scandinavia). Throughout this tour, the newly-merged DZ HYP took the opportunity to present itself to more than 100 interested institutional investors, soliciting their confidence for investing in DZ HYP's bonds.

The 7-year, €1 billion issue was managed by a syndicate comprising DZ BANK, Commerzbank, Helaba, Dekabank, Crédit Agricole and ING. Following the announcement of the transaction at noon on Monday xx November, the order book was opened around 9 am CET on the Tuesday morning, reaching a volume of approximately €1 billion within just over one hour. Thanks to strong demand, with final order volume of €1.2 billion, the original issue spread of mid-swaps minus 2 basis points was adjusted by 3 basis points: the bond was thus issued with a yield of 0.587% (mid-swaps minus 5 bp).

When the order book was closed, the largest portion of the bond (76.9 per cent) had been allocated to German investors, meaning that international investors accounted for a gratifying 23.1 per cent share. Specifically, it was investors from Scandinavia (13.8 per cent), Asia (4.6 per cent), the Netherlands (2.6 per cent) as well as from other European countries (2.1 per cent) that showed particular interest in the bond.

In terms of investor type, banks dominated the order book (51.1 per cent), followed by asset managers/investment funds (27.1 per cent). Central banks and public-sector institutions accounted for 14.6 per cent and insurance companies for 7.1 per cent. 

With the positive feedback received during the roadshow and very strong investor demand for this bond, DZ HYP has therefore achieved a convincing capital markets debut.

Back