HSH Nordbank places EUR 500 million benchmark ship covered bond

Hamburg/Kiel, February 4, 2015 - HSH Nordbank has placed a large-volume ship covered bond for the first time since 2008. The order book of the benchmark ship covered bond with a face value of EUR 500 million was substantially oversubscribed within a short period of time.

The most recent placement by HSH Nordbank continues on from two smaller issues of ship covered bonds with a total face value of around EUR 395 million last year.

"The sound demand from investors is evidence that the market considers our ship covered bond to be a suitable diversification tool," said Mark Bussmann, Head of Strategic Treasury at HSH Nordbank.

The fixed-interest ship covered bond has a three-year term and carries an annual coupon of 0.5 percent. With a loan-to-value ratio of less than 60 % and overcollateralisation of 38.5 % the cover pool is of very high quality. The ship mortgages used for cover reflect a diversified portfolio from the container, bulker and tanker ship classes. Rating agency Moody's has given the bond a rating of "Baa2". Alongside HSH Nordbank, Barclays, Deutsche Bank, JP Morgan and Natixis took part in the transaction.

Ship covered bonds, like mortgage and public-sector covered bonds, meet the strict requirements of the German Pfandbrief Act.

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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