OLB expands capital market presence with second Pfandbrief sub-benchmark issue

Oldenburgische Landesbank AG (OLB) begins its capital market year with the placement of a sub-benchmark issue. The mortgage covered bond (Pfandbrief), in the amount of EUR 350 million, was successfully placed with national and international buyers in a volatile market environment.

The investors are primarily banks and savings banks, asset managers and central banks. As expected, the largest group of investors came from Germany. Around 72 percent of the bond was placed with domestic subscribers. Among foreign buyers, interest was particularly strong from Norway and Austria. "We are pleased with the high demand for our covered bond," says Dr. Rainer Polster, CFO of OLB, "It is further proof for us that we are perceived as a reliable capital market player by national and international investors."

The title is listed on the Luxembourg Stock Exchange. The bearer covered bond issued has a term of seven years and carries an interest coupon of 1,25 percent. OLB has mandated a consortium of banks for the issue comprising of Commerzbank, Erste Bank and LBBW.

OLB's cover pool consists of completed residential properties, mixed-use properties with a predominantly residential component, and a small proportion of commercial properties. 100 percent of the properties in question are located in Germany, and a large proportion of them in Lower Saxony. The solid cover pool therefore does not contain any currency risks.

To further diversify its refinancing, OLB will continue to go to market with various refinancing instruments in the future, and thus support the Bank's strategic growth.