Yesterday, Tuesday, SaarLB successfully placed a senior preferred bond in benchmark format with a volume of 500 million euros on the capital market for the first time. The transaction has a maturity of five years and serves to further diversify the bank’s refinancing.
The bond was issued as a non-subordinated bearer bond and is aimed at insti-tutional investors, banks, savings banks, asset managers and funds. The issue underlines SaarLB’s solid positioning in the capital market and investors’ confi-dence in the bank’s business model and creditworthiness.
The transaction was supported by a banking consortium comprising DekaBank Deutsche Girozentrale, DZ BANK AG, Erste Group Bank AG, Helaba Landes-bank Hessen-Thüringen and Norddeutsche Landesbank – Girozentrale – acting as joint lead managers.
“With the first-ever placement of a senior preferred bond on this scale, we have taken an important step in the further development of our refinancing strategy. The successful issue demonstrates the capital market’s confidence in SaarLB and, at the same time, strengthens our position as a reliable partner for our customers and for the region,” said Dr Jochen Sutor, Chairman of the Executive Board of SaarLB.
The strong demand for the issue was reflected in a 1.5-fold oversubscription. It was particularly encouraging that, despite the challenging market environment, a very granular order book developed. In addition to the savings bank sector, the investor base comprised institutional investors, banks and asset managers from both Germany and abroad.
“With our first senior preferred bond in benchmark format, we are expanding our financing mix to include another important capital market instrument. The renewed high level of demand is also encouraging, particularly from the regional and national savings bank sector as well as from institutional investors, which underlines the confidence in SaarLB and its strategic direction,” adds Gunar Feth, Deputy Chairman of the Executive Board of SaarLB.
With this issue, SaarLB is expanding its access to the capital market and creating additional flexibility in its long-term refinancing.
