Gewobag’s negative floor gamble pays off in Schuldschein market

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By Silas Brown
05 Dec 2019

Gewobag, the A2/A+ rated German housing company, launched the first Schuldschein with a Euribor floor set below zero in November and the transaction has closed at €650m, according to a source close to the deal. The success of this deal will encourage arrangers to bring more companies to market with negative floors in 2020.

BayernLB and LBBW led the transaction, which had an initial target of €150m,  marketing the floating rate tranches with a floor for Euribor of minus 0.15%. Six month Euribor was minus 0.344% on the day the deal was launched.

Tranche maturityPricing 
December 2021 Euribor plus 35bp-40bp
December 2022
Euribor plus 40bp-45bp 
December 2023
Euribor ...

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