Hamburg Commercial Bank with first Senior Non Preferred Bond on the capital market

  • Benchmark volume of EUR 500 million significantly oversubscribed

Hamburg, November 16, 2020 - Hamburg Commercial Bank (HCOB) issued its inaugural public Senior Non Preferred Bond on Thursday, attracting substantial interest from European institutional investors.

The volume of the bond, which was more than two times oversubscribed, amounts to EUR 500 million, with a term of three years and a call right after two years ("3NC2"). With this transaction and the Senior Preferred bond issued in May last year, HCOB successfully establishes itself as a regular issuer of benchmarks on the international capital market.

The order book was opened Thursday morning by the mandated syndicate banks Commerzbank, Deutsche Bank, Goldman Sachs and Natixis with an initial Spread guidance sign of +155 basis points above mid-swap. Strong investor demand allowed to revise the spread guidance significantly downwards in the book building process. At midday the well oversubscribed order book was closed and the final spread set at +125 basis points above mid-swap. The Senior Non Preferred Bond is rated "Baa3" by Moodys.

"We have made visible progress in the transformation of Hamburg Commerical Bank, this is also accompanied by increased confidence on the investor side. The high demand for our Senior Non Preferred Bond and the pricing achieved confirms this," said Ian Banwell, CFO of Hamburg Commerical Bank. "With this issue we are optimizing our liability structure further and diversify our investor base, both domestically and internationally". Nearly half of the bond was placed with investors from UK and Ireland, and around a quarter by German investors followed by France.

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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