Hamburg Commercial Bank makes capital market debut with senior preferred bond

  • Benchmark volume of € 500 million substantially oversubscribed

Hamburg, May 16, 2019 - Hamburg Commercial Bank makes its debut on the bond market: the bank issued its first senior preferred bond today. The volume is € 500 million with a tenor of three years.

Demand for the new issue from German and international investors was very high. This is the first time in more than ten years that the now privatized bank has placed a senior unsecured benchmark bond in the market.

The order books were opened in the morning by the mandated syndicate banks, namely BNP Paribas, Commerzbank, Deutsche Bank, Goldman Sachs and Hamburg Commercial Bank, with an initial yield indication of 90 - 95 basis points above the mid-market swap rate. Due to strong demand from institutional investors, the spread was significantly revised and finally set at 75 basis points above the mid-market swap rate at midday with total orders of € 1.2 billion. Moody’s rated the senior preferred bond ‘Baa2/stable’.

Ian Banwell, Chief Operating Officer at Hamburg Commercial Bank, said: “With this transaction, Hamburg Commercial Bank is set to further diversify its sound funding base. We envisage issuing benchmark transactions on a regular basis to become a visible factor in the market, also facilitating the bank's growth ambitions in clearly defined areas. We aim to serve our clients from a strong domestic position while also expanding the international reach.”

The information contained in this press release does not constitute an offer for the sale of any type of Hamburg Commercial Bank AG securities. Securities of Hamburg Commercial Bank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.

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