OLB continues successful capital market activities with first ever benchmark mortgage covered bond

Oldenburgische Landesbank AG (OLB) is continuing its successful capital market activities: Yesterday, Monday, 22 January 2024, the Bank issued its first ever mortgage covered bond at benchmark level in the amount of EUR 500 million. The bond has a term of eight years and offers investors an attractive long-term investment opportunity. The issue was several times oversubscribed. The high level of interest underscores the confidence of national and international investors in the stability and solidity of OLB.

"The benchmark issue represents the next important milestone for our capital market presence," says Dr Rainer Polster, CFO of OLB, "and at the same time it is a clear signal to national and international investors that we will reliably keep our promise to issue regularly on the capital market." From now on, OLB plans to realise a benchmark-sized mortgage covered bond issue every 12-18 months.

Almost half of the institutional investors in the first benchmark issue were other banks and, in particular, asset managers, central banks and insurance companies or pension funds from Germany and abroad. Around 79 per cent of the shares were subscribed in the Germany-Austria-Switzerland region, twelve per cent in the Nordic countries and four per cent in the UK. The shares are listed on the Luxembourg Stock Exchange.

OLB had mandated a consortium consisting of Danske Bank, Deutsche Bank, DZ Bank, Erste Group, NordLB and UniCredit as joint lead managers for the benchmark issue.

Just last week, OLB made its debut on the Tier 2 bond market and issued a bond totalling EUR 170 million. These two transactions demonstrate the continued strengthening of OLB's position in the financial sector and enable the Bank to respond flexibly to market conditions and optimise its financing mix.