Enquired– DKB Social Pfandbrief 2036

The deal was a complete success. Long maturities are generally difficult territory, especially in the current environment. This was the first benchmark Pfandbrief with a maturity of more than 10 years in more than a year. Hence it was a DKB Social Pfandbrief, too, in January 2023. So we didn’t make it easy on ourselves, but we were rewarded with a high-quality and beautiful order book that ended up oversubscribed more than twice over. This allowed us to narrow the spread by 6bp over the course of the transaction and generate an attractive refinancing for the bank with a yield of less than 3%.

Our Social Pfandbriefe are based on the categories Public Utilities, Social Housing, Health & Care and Education & Research. The last three of our five Social Benchmark transactions were Mortgage Pfandbriefe and focused on social housing. We use them to refinance loans to municipal housing companies and/or housing cooperatives and thus promote affordable housing in Germany – currently an important social issue. This customer group also reflects DKB’s largest loan portfolio and thus a focus of our sustainable business model.

DKB is not only a corporate customer bank but also the second largest retail online bank in Germany. Deposits therefore also play a major role for us as a source of funding and influence our activities in the capital market. But I can well imagine that this is not the last transaction DKB will conduct this year and that there could be a further need to tap the bond market. In any case, we are in the process of further refining our sustainable bond programs in order to continue to live up to our ambition in this segment in the future.