Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) has further expanded its refinancing base by issuing an inaugural Pfandbrief (covered bond). The bank said today that the bond was placed at a spread of 55 basis points over the mid swap rate. The Pfandbrief has an issue volume of EUR 1 billion and a maturity of 7 years. The coupon is 3.75%. The Pfandbrief has been rated Aaa by Moody´s and AAA by Standard & Poor´s.
The issue was oversubscribed more than 5 times, with over 170 orders in the book; final placement was 64% in Germany with the remainder placed with other European investors. 49% was placed with asset managers, pension funds and Central Banks. „The large demand is indicative of the high level of investor trust in Deutsche Bank”, Rainer Rauleder, Deputy Group Treasurer, commented. “The Pfandbrief further expands our stable and cost-effective refinancing structure and we look forward to future issuance in this market”, he added.
In April 2009 Deutsche Bank obtained a licence to issue Mortgage Pfandbriefe from the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). The cover pool (EUR 1.57bn) is composed of assets from Deutsche Bank’s mortgage loan book.
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