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Issuers

Enquired - NORD/LB Green Jumbo Mortgage Pfandbrief

At the much anticipated start of the year, NORD/LB attracted the full attention of investors with a jumbo-sized Green Pfandbrief. This was the first time the bank placed in jumbo size. The Oct 2028 Mortgage Pfandbrief with a coupon of 2.625% was almost 5 times oversubscribed and was allocated at a re-offer of +33bp vs. swaps. Falk Meyer, Head of Funding, Investor Relations and Ratings, NORD/LB, comments on the transaction.

Falk Meyer

Falk Meyer

NORD/LB

We are of course very pleased with the outcome of this exercise. In particular, the high level of investor participation, the granular and in every respect highly diversified book and the final size of the order book bode positive for future transactions. In the end, this enabled us to place a Jumbo sized Pfandbrief in the market that also complies with the new vdp standard for Green Pfandbriefe. With what is now our seventh Green Mortgage Pfandbrief since 2017, we are further strengthening our record and underpin the reputation as one of the leading green bond issuers.

Christian Walburg

Christian Walburg

Association of German Pfandbrief Banks

Did your team prepare the transaction long in advance, what signals did you receive in the run-up?

Falk Meyer

Falk Meyer

NORD/LB

Like probably the majority of issuers, we observed the market very closely and positioned ourselves flexibly. The wider spread levels for Pfandbriefe, the pronounced degree of spread compression along the product cascade and the constructive market sentiment for credits tended to favour a senior or capital transaction, as the market had demonstrated right at the beginning of the year. However, the noticably muted Pfandbrief and covered bond markets and not least the strong demand for the LBBW Pfandbrief issue on the previous day encouraged us to take advantage of the next opportunity on the market for our Pfandbrief.

Christian Walburg

Christian Walburg

Association of German Pfandbrief Banks

What else may investors expect from NordLB as the year progresses?

Falk Meyer

Falk Meyer

NORD/LB

This has been a successful start to the year. We will of course seek to make further appearances in the market in benchmark format in order to further establish ourselves as a frequent issuer. The Pfandbrief will take the most important part. In addition, we also intend to make our presence felt on the market in the senior and Tier 2 segment.

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