Germany

The soft bullet maturity extension currently being considered for introduction into Germany’s Pfandbriefe law would lower the chance of a payment interruption and could mean issuers need to set aside less collateral to achieve the same rating, said Fitch. Soft bullet bonds would also not be subordinate to hard.

Rating: Aa1/—/—

Covered bond activity slowed this week with only three deals emerging, half the number seen in the prior week, with Canadian issuers at the fore.

Aroundtown Property Holdings, the German residential and commercial property company, has abandoned its attempt to induce holders of its €450m pre-IPO convertible bond to convert the bonds to equity.

ADO Properties, the Berlin housing company, raised €100m on Wednesday night with a 10% capital increase through an accelerated bookbuild, managed by Kempen & Co.

A pair of rare SSA names kept Kangaroo and Kauri bond supply ticking over this week, as Asian investor appetite drove demand.

The German association of mortgage banks (VDP) has suggested a potential change in the Pfandbrief law that could result in a change in the maturity structure from hard to soft bullet.

HSH Nordbank found little difficulty finding demand for its €500m seven year issued on Wednesday, and despite its relatively low credit standing, international demand for the bonds was strikingly high.

Deutsche Pfandbriefbank attracted an unusually large order book for its €500m four year deal on Monday, as the German lender returned to the public senior market for the second time this year.

Bertelsmann, the German broadcaster and publisher, issued a €500m bond on Monday that attracted a book of nearly €2bn, but kept the initial size as pricing inside guidance stirred investor sensitivity.

Eurofima was the sole issuer testing the euro waters on Monday, with bankers expecting a quiet second half of the month in the market after a frantic start to April in which issuers placed 12 benchmark deals.

NRW.Bank has appointed Nord LB managing board member Eckhard Forst to be its managing board chairman when the incumbent Klaus Neuhaus retires at the end of October.