HSH Nordbank issues significantly oversubscribed mortgage Pfandbrief

Hamburg/Kiel, April 20, 2016 - HSH Nordbank has taken advantage of the currently favourable market to refinance with a large-scale capital market transaction. The Bank has issued a mortgage Pfandbrief with a seven-year term and a volume of € 500 million.

The order book came to about € 800 million after just a few hours and was closed near midday. The transaction extends the curve of outstanding, liquid Pfandbriefe to the year 2023. Moody's has rated the Pfandbrief Aa3.

“The timing for large-scale Pfandbrief placements is currently favourable, liquid transactions enjoy strong investor demand”, said Ralf Löwe, Head of Funding at HSH Nordbank. “This is also a clear sign to us as a bank that our profile is getting the attention of the market.”

The fixed-income Pfandbrief is collateralised by loans largely on commercial real estate in Germany. The annual coupon is 0.375 percent. Foreign investors accounted for around 40 percent of the issue. Alongside HSH Nordbank, BNP Paribas, Commerzbank, DZ Bank and Nomura participated in the transaction.

HSH Nordbank uses Pfandbriefe as a key instrument in refinancing. The target group are institutional investors based both in and outside Germany. HSH Nordbank successfully placed a large-volume public-sector Pfandbrief as recently as February 2016.

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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