Hamburg Commercial Bank issues 5-year senior preferred benchmark bond
Hamburg Commercial Bank (HCOB) issued a 5-year benchmark bond on Tuesday, further optimizing its refinancing structure. The senior preferred bond with a coupon of 0.375 percent and a volume of EUR 500 million was well received by investors.
Following the successful issuance of two senior benchmark bonds with a three-year maturity in May 2019 and November 2020, this five-year bond significantly extends the maturity profile of HCOB’s outstanding bonds.
The joint lead managers for the Baa2 rated issue by Moody’s were Barclays, BNP Paribas, CaixaBank, Citi and Deutsche Bank. The final spread was 73 basis points above mid-swap. Around two-thirds of the bonds were placed with investors from Germany, followed by the UK and Ireland.
“For institutional investors, we have become a reliable and regular issuer. The pricing as well as the good demand reflects investors’ confidence in the future of our bank”, said Ian Banwell, Chief Financial Officer of Hamburg Commercial Bank.
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