Hamburg Commercial Bank issues senior non-preferred benchmark bond
- Volume of EUR 500 million significantly oversubscribed
Hamburg Commercial Bank (HCOB) issued its second benchmark bond in the current year on Tuesday, attracting strong interest from international investors. The benchmark bond has a 5-year maturity with a call option after four years.
The order books were opened on Tuesday morning by the mandated syndicate banks Commerzbank, Deutsche Bank, Goldman Sachs, HSBC and Natixis with an initial spread indication of around +110 basis points over swap midpoint. With very high demand from institutional investors, the oversubscribed order book was closed at midday with a final spread of +90 basis points over swap midpoint. The senior non-preferred bond is rated “Baa2” by Moodys.
“Hamburg Commercial Bank is active as a regular issuer in the capital market. The high demand as well as the pricing achieved reflect the confidence of investors. With the benchmark bond issued today, the Bank continues to consistently expand its investor base both nationally and internationally,” said Ian Banwell, CFO of Hamburg Commercial Bank. The bond was widely placed in Europe. The UK and Ireland account for the highest share with over one third, followed by France and Scandinavia. Around one third of the bond volume went to German investors.
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