HVB Real Estate order book for the Jumbo Pfandbrief closed after 2.5 hours strongly over-subscribed
The order book for the new 3-year jumbo Hypothekenpfandbrief (mortgage bond) issued by HVB Real Estate was closed on Monday after a record-looking bookbuilding phase of 2 ½ hours only, with orders totalling approximately € 4 billion. The Joint Lead Managers DrKw, HVB and WestLB alone held an order volume of € 2.7 billion on the basis of fixed price reoffer with a joint lead pot of € 1.125 billion only.
In the wake of the huge oversubscription of the bond HVB Real Estate Bank decided in agreement with the Lead Managers to increase the volume of € 1.5 billion to € 1.75 billion. Although the issuers had initially emphasized that the maximum issuing volume would be € 1.5 billion, the increase appeared appopriate in order to satisfy the overwhelming demand of investors.
Pricing details quoted on Tuesday:
Coupon 2.75%
Fixed Price Eoffer 99.886%
Spread Mid-Swaps + 15 b