The private Hamburg Commercial Bank (HCOB) said it successfully placed its first benchmark bond issue of the year in the capital markets.
HCOB said the senior preferred €500 million bond has a maturity of five years, was oversubscribed approximately three times with a total demand of €1.5 billion and was placed with investors from Germany (30%), the UK/Ireland (29%), France (15%) and other European countries.
The order book opened with an initial spread indication of 150 basis points above mid-swaps and closed with a final spread of 115 basis points above mid- swaps.
The syndicate banks Citi, Crédit Agricole CIB, Deutsche Bank, Jefferies and Morgan Stanley were mandated as Joint Lead Managers. The bond is expected to be rated “A3” by Moody’s.
“We are delighted with the very high level of investor participation from Germany and abroad, for which we would like to express our thanks,” said Marc Ziegner, Chief Financial Officer of Hamburg Commercial Bank.
“With this five-year bond we have successfully extended our credit curve and further broadened our investor base.”