Deutschmarks

  • 06 Aug 1998
Email a colleague
Request a PDF
* Energieversorgung Niederösterreich AG

Rating: Aa3/AA+

Amount: DM275m (increased 06/08/98 from DM200m)

Maturity: August 26, 2008

Issue price: 102.75 (increase: 102.925)

Fixed re-offer price: 100.075 (increase: 100.25)

Coupon: 5%

Spread at re-offer: 39bp over the 4.75% July 2008 Bund (increase: 38bp over)

Launched: Tuesday August 4

Lead mgr: Deutsche

Bookrunner's comment:

This went better than we had expected and we were sold out within two hours of launch. All the co-leads were positive on the transaction and many asked for more bonds. Unfortunately, we were only able to distribute a little more paper as we had almost none left.

Around 75% of the initial DM200m went to Austrian accounts and the rest was sold to Germany. When we increased the deal more of the paper went to Germany and, to a lesser extent, Switzerland. The proportion of the bonds in Austrian hands after the DM75m increase was about 60%.

After the success of this transaction EVN will be better known to Deutschmark buyers. EVN, an Austrian electricity utility, was keen to sell some paper to non-Austrian accounts and so we scaled back some tickets to Austrian investors.

Most of the Austrian buyers were institutions -- asset managers, insurance companies and banks. The German sales were to savings banks and Landesbanks, indicating that the paper will end up with retail. The Swiss sales were also to retail intermediaries.

By the time of the add-on the spread had tightened 1bp to 38bp over and we increased the transaction at that level. The paper is (Thursday evening) bid at 38bp over.

The borrower chose a 10 year maturity as it was looking for longer dated funds and we were confident that the deal would meet a positive reception.

Market appraisal:

"...we bid for the deal at the same level so we have no complaints about the pricing. The deal is targeted at retail investors in Austria.

We had DM4m and sold it in one go to an Austrian account in the first minute. We have been getting more orders but can't get any more paper as Deutsche is already sold out as well -- it was a small deal after all.

German accounts were not interested as they are not familiar with the name. Additionally, German retail investors tend to prefer more liquid deals these days. Retail do normally prefer shorter maturities, but this 10 year maturity wasn't a problem."

"...the kind of deal that is targeted at Austrian retail and which those investors will be more than happy to accept. We sold our ticket easily to two Austrian accounts.

Other investors do not know the name and we didn't make any effort to sell this anywhere but Austria -- in fact, we didn't really have to try to sell this at all.

The pricing is not generous, but is fair. Deutsche Telekom is trading at around 34bp over, so an extra 5bp is reasonable for a quality Austrian utility."

"...the pricing is certainly fair, if not generous. You need a decent price in this market because there are not a lot investors around and there is still a lot of inventory on lead managers' books.

EVN is a good quality Austrian credit and the kind of name that Austrian investors will always buy. German investors were asking 'who?' when they heard the name. We sold our DM4m to Austria."

* Sabadell International August 6,Finance Ltd

Guarantor: Banco Sabadell SA

Rating: A1/A

Amount: DM100m

Maturity: January 30, 2001

Issue price: 100.005

Coupon: three month Libor flat

Launched: Monday August 3

Sole mgr: Tokyo-Mitsubishi

Bookrunner's comment:

This transaction was predominantly directed at investors who had a maturity preference for 2.5 years. Subsequent to launch, we have seen interest from other investors at around the Libor plus 5bp level.

Pfandbriefe/domestic issuance:

* Bayerische Handelsbank

Amount: DM100m (increased 06/08/98 from DM50m; increase to DM100m issue launched 30/07/98) Öffentlicher Pfandbrief series 1105

Maturity: August 17, 2005

Issue price: 101.00

Coupon: 4.625% until 17/08/99; 4.75% until 17/08/01; 4.875% until 17/08/03; 5% until 17/08/04; 5.25% thereafter

Call option: at par from 17/08/99

Launched: Tuesday August 4

Sole mgr: DG Bank

* Berlin-Hannoverische Hypothekenbank

Amount: DM100m Öffentlicher Pfandbrief series 104

Maturity: August 18, 2003

Issue/fixed re-offer price: 100.00

Coupon: 4% until 18/08/99; 4.8% thereafter

Call option: at par on 18/08/99

Launched: Wednesday August 5

Lead mgr: Morgan Stanley Dean Witter

* BfG Hypothekenbank

Amount: DM100m Öffentlicher Pfandbrief series 255

Maturity: February 19, 2004

Issue price: 100.00

Coupon: 4.25% until 19/02/99; 4.75% thereafter

Call option: at par on 19/02/99

Launched: Monday August 3

Sole mgr: WGZ

* BfG Hypothekenbank

Amount: DM500m (fungible with DM1bn issue launched 14/07/98) Öffentlicher Pfandbrief series 251

Maturity: September 15, 2003

Issue price: 99.29

Fixed re-offer price: 99.12

Coupon: 4.25%

Spread at re-offer: 14.5bp over the 6% September 2003 Bund

Launched: Wednesday August 5

Lead mgr: BfG, Commerzbank, Deutsche, DG, Dresdner KB, LB Sachsen, WestLB, WGZ

* Deutsche-Genossenschafts Hypothekenbank

Amount: DM500m (fungible with two issues totalling DM1.5bn launched 12/06/98 and 21/07/98) Öffentlicher Pfandbrief series 776

Maturity: June 16, 2008

Issue price: 99.175

Fixed re-offer price: 99.00

Coupon: 4.75%

Spread at re-offer: 28.5bp over the 4.75% July 2008 Bund

Launched: Tuesday August 4

Joint books: Commerzbank, Deutsche, DG, Dresdner KB, Vereinsbank

* Deutsche Girozentrale-Deutsche Kommunalbank

Amount: DM500m (fungible with two issues totalling DM1.5bn launched 06/01/98 and 28/04/98) Deutsche Kommunal-Anleihe series 410

Maturity: January 9, 2003

Issue price: 99.80

Fixed re-offer price: 99.63

Coupon: 4.25%

Spread at re-offer: 4.5bp over the 7.125% January 2003 Treuhand

Launched: Tuesday August 4

Joint books: Balaba, BGB, DGZ, LB Sachsen, NordLB, SüdwestLB, WestLB

* Deutsche Hypothekenbank Frankfurt

Rating: Aaa

Amount: DM1bn (fungible with two issues totalling DM1.5bn launched 25/05/98 and 02/06/98) Öffentlicher Pfandbrief series 1244

Maturity: October 10, 2005

Issue price: 99.40

Fixed re-offer price: 99.21

Coupon: 4.5%

Spread at re-offer: 9bp over the 6.5% October 2005 Bund

Launched: Wednesday August 5

Joint books: CDC, Deutsche, DG, Dresdner KB, LB Sachsen, SGZ, SüdwestLB, Vereinsbank

* Frankfurter Hypothekenbank Centralboden

Rating: Aaa

Amount: DM500m (fungible with three issues totalling DM2.5bn launched 14/01/98, 20/02/98 and 24/04/98) Öffentlicher Pfandbrief series

Maturity: April 26, 2006

Issue price: 102.30

Fixed re-offer price: 102.095

Coupon: 5%

Spread at re-offer: 9bp over the 6.25% April 2006 Bund

Launched: Thursday August 6

Joint books: Commerzbank, Deutsche, Dresdner KB, HSBC Trinkaus, Vereinsbank

* Hypothekenbank August 6,in Essen

Rating: Aaa/AAA

Amount: DM1bn Öffentlicher Pfandbrief series 514

Maturity: August 11, 2008

Issue price: 99.275

Fixed re-offer price: 99.10

Coupon: 4.75%

Spread at re-offer: 27bp over the 4.75% July 2008 Bund

Launched: Tuesday August 4

Joint books: Commerzbank, Goldman Sachs, HSBC Trinkaus, Lehman, Merrill Lynch, Morgan Stanley DW

* Hypothekenbank August 6,in Essen

Rating: Aaa/AAA

Amount: DM1bn (fungible with two issues totalling DM2bn launched 22/09/97 and 19/03/98) Öffentlicher Pfandbrief series 486

Maturity: November 15, 2000

Issue price: 99.885

Fixed re-offer price: 99.80

Coupon: 4%

Spread at re-offer: 8bp over the 5.125% November Bobl 117

Launched: Tuesday August 4

Joint books: ABN Amro, Commerzbank, Deutsche, HSBC Trinkaus, Hypobank, NordLB, WGZ

* Kreditanstalt für Wiederaufbau

Guarantor: Federal Republic of Germany

Rating: Aaa/AAA

Amount: DM1bn

Maturity: August 11, 2010

Issue price: 98.82

Fixed re-offer price: 98.65

Coupon: 4.75%

Spread at re-offer: 30bp over the 4.75% July 2008 Bund

Launched: Tuesday August 4

Joint books: CAI, DG, Rabobank

* Münchener Hypothekenbank

Rating: AAA

Amount: DM1bn Öffentlicher Pfandbrief series 548

Maturity: August 11, 2003

Issue price: 99.26

Fixed re-offer price: 99.09

Coupon: 4.25%

Spread at re-offer: 11bp over the 6.5% July 2003 Bund

Launched: Monday August 3

Joint books: CAI, DG, Rabobank

* Rheinische Hypothekenbank

Rating: Aaa

Amount: DM1bn Hypotheken Pfandbrief series 501

Maturity: December 12, 2000

Issue price: 98.855

Fixed re-offer price: 98.77

Coupon: 3.5%

Spread at re-offer: 9.5bp over the 5.125% November 2000 Bobl 117

Launched: Wednesday August 5

Joint books: Commerzbank, LB Sachsen, NordLB, SG, SüdwestLB, Vereinsbank

* Württembergische Hypothekenbank

Amount: DM300m Inhaberschuldverschreibung series 187

Maturity: August 14, 2000

Issue price: 100.06

Coupon: three month Fibor plus 3.125bp

Launched: Monday August 3

Lead mgr: DG

* Württembergische Hypothekenbank

Amount: DM300m Inhaberschuldverschreibung series 188

Maturity: February 12, 2001

Issue price: 100.04

Coupon: three month Libor plus 3.125bp

Launched: Tuesday August 4

Joint books: Deutsche, Dresdner Kleinwort Benson

  • 06 Aug 1998

All International Bonds

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 92.59 388 8.96%
2 Citi 85.30 278 8.25%
3 BofA Securities 63.15 265 6.11%
4 Barclays 58.01 223 5.61%
5 Deutsche Bank 55.74 184 5.39%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 60.87 123 14.06%
2 Credit Agricole CIB 28.59 93 6.60%
3 Santander 25.41 90 5.87%
4 JPMorgan 23.88 61 5.52%
5 UniCredit 21.51 103 4.97%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 2.07 11 10.42%
2 BofA Securities 1.40 6 7.01%
3 Citi 1.37 7 6.87%
4 Morgan Stanley 1.36 6 6.85%
5 JPMorgan 1.31 7 6.59%