DVB placed second €500 million senior unsecured benchmark issue

DVB tapped the financial market with a five-year €500 million transaction. This was the Bank’s second euro-denominated senior unsecured benchmark issue in 2012, following its inaugural three-year €500 million benchmark transaction in May.
The senior, unsecured bonds carry a maturity date of 30 August 2017, a coupon of 2.5% with a spread of 150 basis points vs. mid-swaps. Joint bookrunners are DZ BANK AG, LBBW and UniCredit.
Wolfgang F. Driese, CEO and Chairman of the DVB’s Board of Managing Directors, commented on this issue as follows:
"This very successful transaction highlights DVB’s strong recognition in the capital markets it further broadens and diversifies our investor base. Our objective is to build a euro-denominated senior unsecured benchmark curve."
The issuance was oversubscribed with a total volume of above €1.2 billion.
Banks and asset managers were the most important investor groups, participating with 43% and 41% respectively, followed by insurance companies with 13% and central banks with another 2%. German investors took the lion’s share with 77% followed by Nordic Countries, Austria and Switzerland with 7% each. Investors from the Middle East completed the picture.