Another very successful placement of a public sector Pfandbrief in the sub-benchmark format by SaarLB

When the books opened last Tuesday at 8:50 and then filled up very briskly, it soon became clear that the announced volume of EUR 250 million for our public sector Pfandbrief would quickly be reached.

Following on from the Pfandbriefe with maturities of ten and seven years that had also previously been issued successfully, this time the bond was issued with a term of five years and 3.00%.

By about 10:30, the volume had already reached over EUR 925 million so the book closing time of 11:00 was announced early, too.

“We can, of course, once again attribute the high over-subscription of our Pfandbrief in the sub-benchmark format to a combination of a good spread level, our market reputation, right timing and an excellent execution strategy,” says Gunar Feth, Deputy Chairman of the Board of Management of SaarLB.

Another particularly positive aspect worth pointing out is the high order share of over 80% from German banks and savings banks.

Despite the early announcement of the book closing time, there was tremendous interest in our public sector Pfandbrief until the books closed. Consequently, the final reoffer spread could be set at a stable order book of over EUR 940 million at MS +7bp.

“As we mainly refinance ourselves on the money and capital markets, this type of refinancing is a very suitable instrument for this for us. It is particularly pleasing that we were able to prevail in a challenging new issue environment today, which also certainly speaks for our quality,” adds Gunar Feth.

With the help of the arrangers involved, namely ‘Erste Group’, ‘DekaBank’, ‘LBBW’ and ‘UniCredit’, we were once again able to successfully place a public sector Pfandbrief in the sub-benchmark format on the market. Further detailed information on the issue can be found on our website in the “Investor Relations” section.