Sparkasse Hanover: Second benchmark within 12 months
With its first liquid Public Pfandbrief and its second benchmark transaction overall after its debut with a Mortgage Pfandbrief in May 2024, Sparkasse Hannover reopened the liquid segment together with Helaba in the second week of May after five weeks without supply. The 7-year Public Pfandbrief was announced at € 500 million and was almost three times oversubscribed with a book of over € 1.45 billion. The initial price thought of +46bp vs. swaps was tightened in to a final +40bp during bookbuilding.
Christian Walburg
Association of German Pfandbrief Banks
How satisfied are you with your bank's second benchmark debut?
Markus Schmidt
Sparkasse Hannover
We are really extremely pleased with the transaction. With a maturity of seven years and an attractive spread, we succeeded in generating very high investor demand from Germany and abroad. The fact that hardly any orders were lost even after the final spread was set, and that the order book even increased slightly, also underlines a very attractive pricing. We were particularly pleased about 26 new addresses that we had not previously seen in our order books.
Christian Walburg
Association of German Pfandbrief Banks
What kind of loan business does Sparkasse Hannover refinance with the Public Pfandbrief?
Markus Schmidt
Sparkasse Hannover
Our home market is the Hannover region with its 21 towns and municipalities. For many years, we have been a reliable financing partner for our public sector customers and municipal companies for municipal infrastructure, e.g. schools, hospitals and local public transport. To a limited extent, we also participate in national tenders – preferably in cooperation with the respective local savings banks, of course.
Christian Walburg
Association of German Pfandbrief Banks
Do you see additional business from the financing packages for infrastructure and the additional expenditure for the defense task agreed at federal level?
Markus Schmidt
Sparkasse Hannover
A resounding yes. The enormous size of the packages clearly shows the high level of investment required – and then there are the additional investments by the private sector. As a savings bank, we see ourselves in an excellent position here thanks to our many years of experience in the public sector lending business and, with the Public Pfandbrief, we have the adequate funding instrument.
Christian Walburg
Association of German Pfandbrief Banks
With the deal, Sparkasse Hannover has tapped the market in the benchmark segment for the second time within a year. What can investors expect from Sparkasse Hannover in the benchmark segment in the time to come?
Markus Schmidt
Sparkasse Hannover
With our two benchmark issues, we have proven that we want to establish ourselves permanently in the segment of liquid Pfandbriefe. Our refinancing strategy is to be in the market on a regular basis. This means that our investors – and all those who would like to become investors – can look forward to a new issue from us every one to two years.