€ 1.5 Billion Jumbo Bond Priced
The terms of the € 1.5 billion jumbo bond issued by the federal states of Bremen, Hamburg, Mecklenburg-Western Pomerania, Rhineland-Palatinate, Saarland, Schleswig-Holstein and Thuringia were fixed today. The six-year bond (WKN 124014, ISIN Code: DE 0001240141, due on May 22, 2009) carries a coupon of 3.25% and has an issue price of 99.606%. The fixed re-offer price is 99.431%, which is equivalent to 20 basis points above the 3.75% January 2009 Bund. Payment date is May 22, 2003. The issue is available in denominations of €1,000 and will be listed on the Bremen, Frankfurt and Hamburg Stock Exchanges.
Joint lead managers are Citigroup, Deutsche Bank, HSBC and WestLB. Co-lead managers are DekaBank, Landesbank hessen Thüringen, LBBW, J.P. Morgan, NordLB and Vereins-und Westbank. All participating banks will act as market makers analogous to the jumbo Pfandbrief market. The issue has an AAA rating of Fitch IBCA.