HSH Nordbank issues 5-year mortgage covered bond with a volume of € 500 million

Hamburg/Kiel, November 12, 2015 - Only a few weeks after the positive decision in the EU state aid proceedings HSH Nordbank has placed a mortgage covered bond with a five-year term and a volume of EUR 500 million with institutional investors.

The placement follows on from two other large-volume transactions dating from the first half of the year, further expanding its funding base. Back in February, for the first time since 2008 HSH Nordbank placed a ship covered bond with a volume of EUR 500 million on the market, and in June it refinanced a further EUR 500 million via a mortgage covered bond with a seven-year term.

"The covered bond constitutes a stable funding channel for HSH Nordbank and an attractive investment opportunity for our investors. Today we have once again demonstrated our ability to convince on the capital market with our profile", said Mark Bussmann, Head of Strategic Treasury at HSH Nordbank.

The issue attracted particular interest from investors in Germany and continental Europe.

The fixed-income mortgage covered bond has a five-year term, the annual coupon is 0.25 percent. The cover pool has a loan-to-value ratio of less than 60 percent and surplus cover of currently more than 10 percent. In addition, the real estate loans used for collateralisation reflect a diversified portfolio of commercial properties mainly from Germany. Rating agency Moody's has given the mortgage covered bond an "Aa3" rating.

HSH Nordbank uses covered bonds as a central and strategic instrument in refinancing. In 2015 alone HSH Nordbank has placed covered bonds with a total volume of just under EUR 2 billion with domestic and international investors.

Alongside HSH Nordbank, Commerzbank, Deutsche Bank, DZ Bank and NordLB also participated in the transaction.