SaarLB’s largest Pfandbrief issue for a total of EUR 500 million
- Successful issue of a Public Pfandbrief (benchmark)
- EUR 500 million, the largest volume in the bank’s history
- Extremely granular book with 70 individual orders
- Term of 10 years at 3.00 %
- Placement on the capital market with the help of the arrangers involved (Dekabank, Erste Group, Helaba and LBBW)
SaarLB successfully placed a public Pfandbrief with a volume of EUR 500 million on the capital market for the first time on Wednesday.
The books were opened at 8:55 a.m. last Wednesday. The excitement among all parties involved was enormous, as no Public Pfandbrief with a maturity of 10 years had been issued since June 2023. However, it quickly became clear that the targeted volume of EUR 500 million would soon be reached.
After about just one hour, the volume had already exceeded EUR 500 million and the first positive update from the lead managers was sent to the market early on. The issue was particularly well received by the Association of Landesbanken (state banks) and Sparkassen (savings banks).
“For the first time in the history of our bank, we have placed an issue of this size in the market. The rapid oversubscription once again demonstrates our exceptional market reputation combined with a good spread level and the right timing,” said Gunar Feth, Deputy Chairman of SaarLB’s Board of Management..
The final reoffer spread was set at MS +46 bp with a stable order book of over EUR 1.1 billion. It started at +52 bp. The granularity of the order book, with 70 individual orders, was also pleasing.
“As we mainly refinance ourselves on the money and capital markets, this type of refinancing is a very suitable instrument for this for us. It is particularly pleasing that, after a strong month of new issues in the covered bond sector, we were able to attract investors for a 10-year debut benchmark issue, which certainly speaks for our quality,” added Gunar Feth. The success of the issue also speaks for our arrangers Erste Group, LBBW, Helaba and Dekabank, which once again made a significant contribution to this strong result. Further detailed information on the issue can be found on our website in the “Investor Relations” section