After SaarLB’s success placing public covered bonds (Pfandbriefe) in the sub-benchmark format in recent years, it has now achieved another major success in its issuing.
The latest issue was characterised by a special feature, as it was a social covered bond in the sub-benchmark format. SaarLB is only the third issuer and the first Landesbank with a social covered bond on the market.
The issue proceeds of this public social covered bond (coupon 1.75%), which has a maturity of 10 years, will be used for projects and financing in public utilities, health and care as well as education and research. The creation of social added value, both on the German and French markets, has always been one of SaarLB’s goals as the Franco-German regional bank.
In a very challenging market environment, demand of €340 million significantly exceeded the issue size of the social covered bond of €250 million.
“The significant oversubscription showed the great interest in our covered bond once again. For us, this is a sign that, on the one hand, we are offering investors an interesting security with attractive conditions and, on the other hand, that we have a good refinancing instrument in our portfolio. We are also pleased that we have numerous new investors among the subscribers – in part because of the sustainable orientation of the covered bond,” says Christian Mathe, Head of Treasury and Syndication at SaarLB.
The investor presentation and supplementary information on this can be found here at our website.
