Strong interest in OLB's new mortgage covered bond
- Oldenburg | 05. Juni 2025
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 widely diversified universal bank with a nationwide presence and more than 150 years of experience in the core region of north-west Germany. Under the OLB and Bankhaus Neelmeyer brands, the Bank advises its approximately 1 million customers in the Private & Business Customers and Corporate & Diversified Lending segments in person and via digital channels. OLB has total assets of more than EUR 30 billion, making it a significant financial institution in Europe.
Feel free to visit us at www.olb.de and www.neelmeyer.de as well as on Facebook, Instagram and YouTube.
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