German lender Berlin Hyp has successfully launched a senior preferred bond in benchmark format, the bank has reported.
The €500 mln issue has a seven-year term and is rated Aa2 and A+ by Moody's and Fitch respectively. Berlin Hyp pioneered the market for senior preferred bonds in 2018 when it became the first German bank to launch such a bond in August 2018. It said no other German bank had executed such an issue this year.
Syndicate banks Commerzbank, Crédit Agricole, HSBC, JP Morgan and LBBW were the bookrunners, mandated by Berlin Hyp.
According to the lender, German savings banks bought almost half of the bond, while asset managers followed with 23% and official institutions with 16%. At 77%, the lion's share of the bond went to German investors. French and Scandinavian investors secured 8% and 4%, respectively.
'This is an outstanding result,' said Gero Bergmann, member of the Berlin Hyp board of management responsible for capital markets. 'The
large order book shows Berlin Hyp's high standing on the capital market. We are very pleased about this achievement and would like to thank the investors who made it possible.'