Enquired –first Green Pfandbrief of DZHyp in 2024
Christian Walburg
Association of German Pfandbrief Banks
How has DZ HYP's first Green Pfandbrief since last summer been received in the market?
Nicole John
The placement of DZ HYP’s Green Pfandbrief with a long 4-year maturity was extremely successful. Despite the volatile market environment in the wake of the French elections, demand for our green bond product was excellent. The issue volume of EUR 500 million was matched by an order book totalling around EUR 2.45 billion (including EUR 275 million JLM) at the end of the bookbuilding process. Due to this high oversubscription but also due to the low spread sensitivity of investors, the final spread was set at +20 basis points (versus 6M EURIBOR). A great success, which was supported by more than 100 investors from 15 countries.
Christian Walburg
Association of German Pfandbrief Banks
DZ HYP is already in its third year as an issuer of Green Pfandbriefe - what was or is the biggest challenge for you?
Nicole John
One of the biggest challenges in the ESG context continues to be the issue of data procurement and collection. However, we are also seeing a higher level of commitment from all stakeholders involved, as the transformation of the property market can only succeed by working together.
Christian Walburg
Association of German Pfandbrief Banks
The trade was DZ HYP's fourth liquid issue in the course of the year - what funding requirements do you still see?
Nicole John
As a traditional Pfandbrief bank, DZ HYP is one of the institutions whose main source of funding is the Pfandbrief. In our case, this includes Mortgage as well as Public Pfandbriefe. As a permanent issuer, DZ HYP is therefore regularly active in the market and takes advantage of favourable issuing windows. This year, we have already raised EUR 2.5 billion in liquid Mortgage Pfandbriefe with medium and long maturities. We expect to issue a further EUR 1.5 billion by the end of 2024 due to our planned new business activities and upcoming Pfandbrief maturities.
Christian Walburg
Association of German Pfandbrief Banks
Last year, DZ HYP issued more than EUR 2 billion in the Green Pfandbrief segment, including three benchmarks and one tap as well as one sub-benchmark. What else can investors with a focus on green bonds expect from your bank after the summer break?
Nicole John
Following the issue of this green bond, no further green issue in benchmark format is initially planned for 2024. Nevertheless, investors can also buy our green bonds as private placements at any time.