WestLB increases Jumbo Pfandbrief
WestLB AG took advantage of the improving market conditions and increased its jumbo Pfandbrief, originally issued in 2007, by € 625 million to bring the issue size to € 1.625 billion. The Pfandbrief pays an annual interest rate of 4.75% and matures in June 2012. DZ Bank joined the consortium, originally joint-lead by Barclays Capital, Morgan Stanley, UBS and WestLB, in the placement of the issue.
With this transaction WestLB is responding in a timely manner to the favourable environment in the Pfandbrief market and corresponding customer demand. The volume, which is striking for an increase of an existing Pfandbrief, underscores the importance of the Pfandbrief as a long-term funding tool and demonstrates the ability of WestLB to execute jumbo transactions in the current challenging and volatile market conditions.
The jumbo Pfandbrief was increased at a re-offer spread of mid-swaps +35 basis points or 77 basis points above the Federal Note Series 150.