Gewobag’s negative floor gamble pays off in Schuldschein market
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.
|December 2021||Euribor plus 35bp-40bp|
|December 2022||Euribor plus 40bp-45bp|
|December 2023||Euribor ...|