Hamburg Commercial Bank issues a Mortgage Covered Bond

  • Volume of 500 million euros significantly oversubscribed

Hamburg, October 27, 2021 - Hamburg Commercial Bank (HCOB) issued its first Mortgage Covered Bond on Tuesday, October 26th, attracting strong interest from national and international investors. The Mortgage Covered Bond has a 7-year maturity.

The order books were opened on Tuesday morning by the mandated syndicate banks ABN AMRO, Commerzbank, LBBW, Société Général and UniCredit with an initial spread indication of around 6 basis points over mid-swap. With high demand from institutional investors, the well- oversubscribed order book closed at midday with a final spread of +2 basis points over mid-swap. The Mortgage Covered Bond is rated "Aa1" by Moodys.

"For Hamburg Commercial Bank, this was the first issuance of a Mortgage Covered Bond in benchmark format. The high demand as well as the pricing demonstrate the confidence investors have in our bank," said Ian Banwell, CFO of Hamburg Commerical Bank. "With the Mortgage Covered Bond, the Bank is refinancing one of its core business areas in a cost-efficient manner, further broadening its national and international investor base and underlining its active role as an issuer in the capital markets". The majority of the Mortgage Covered Bond was placed in Germany followed by Scandinavia and the BeNeLux countries.

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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