Aareal pays no NIP for first covered of 2021

By Bill Thornhill
05 Jan 2021

Aareal Bank priced the first covered bond of the year flat to its curve and, unusually, the first leg of the swap payment was priced below the European Central Bank’s deposit rate of minus 0.50%. Even so, the bonds attracted good demand.

After mandating joint leads BNP Paribas, Commerzbank, LBBW, Société Générale and UniCredit on Monday, Aareal Bank opened order books for a €500m no-grow 0.01% February 2028 Pfandbrief secured on commercial mortgages on Tuesday with initial guidance of 4bp area over mid-swaps.

After 90 ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial