Strong interest in OLB's new mortgage covered bond
Benchmark issuance with ten-year tenor successfully placed
Summary
Benchmark issuance with ten-year tenor successfully placed
OLB confirms plans for regular presence on the capital market
OLB has added another chapter to its successful capital market presence with the issue of a new benchmark mortgage covered bond in the amount of EUR 500 million. In a highly competitive environment characterised by high issuance activity and amid the process of changing ownership at OLB, the Bank was able to issue its mortgage covered bond on Wednesday, 4 June 2025, with a ten-year tenor to about 70 institutional investors.
The bond was issued with a coupon of 3.00% (MidSwap + 55 basis points) and was three times oversubscribed. OLB’s cover pool was rated “Aaa” by the rating agency Moody's. The investors were primarily banks, asset managers and insurance companies from Germany, France and Austria. A consortium consisting of Danske Bank, DekaBank, Deutsche Bank, DZ BANK, Erste Group and UBS Investment Bank was mandated as joint lead manager.
"Growing smart – refinancing innovatively, that is our guiding principle. The sustainable broadening of our investor base therefore forms an important strategic foundation for our continued dynamic growth course," says Dr Rainer Polster, CFO of OLB. With a tenor of ten years, the mortgage covered bond makes a significant contribution to the Bank's long-term cost-efficient funding. "We are very proud to have placed our first ten-year benchmark issue so well. This mortgage covered bond fits perfectly into the maturity structure of our outstanding bonds," says Patrick Hartmann, OLB Head of Treasury & Markets.
The new issuance is the fourth covered bond since 2021 and the second benchmark issue after January 2024. OLB has already been active on the capital market this year with its first RMBS bond (Residential Mortgage-Backed Securities – securitisation of Dutch government-guaranteed mortgage loans) in benchmark format. At least two mortgage-backed transactions per year are also planned for the future. "We have established a reliable presence on the capital market and enjoy a high level of trust among national and international investors," says Dr Rainer Polster, "we intend to strengthen and expand this position through further regular issuances."
About OLB
OLB is a universal bank with a nationwide presence in Germany and more than 150 years of history in north-west Germany. Under the OLB and Bankhaus Neelmeyer brands, it serves around one million customers in the two strategic business areas of Private & Business Customers and Corporates & Diversified Lending, both in person and via digital channels. The institution has a network of 80 branches nationwide and employs around 1,700 people.
With total assets of over EUR 30 billion, OLB became a significant financial institution at the beginning of 2025 and has since been directly supervised by the European Central Bank. Since January 2026, OLB has been part of TARGO Deutschland GmbH and is thus part of the cooperative Crédit Mutuel Alliance Fédérale, one of the largest and financially strongest banking groups in Europe.
Feel free to visit us at www.olb.de and www.neelmeyer.de as well as on Facebook, Instagram and YouTube.
Contact
Marthe Schepker
Phone: +49 (0)441 221 2742
E-Mail: marthe.schepker@olb.de
Matthias Obst
Phone: +49 (0)69 756193 44
E-Mail: matthias.obst@olb.de
Britta Silchmüller
Phone: +49 (0)441 221 1213
E-Mail: britta.silchmueller@olb.de
Timo Cyriacks
Phone: +49 (0)441 221 1781
E-Mail: timo.cyriacks@olb.de
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