DVB Bank SE placed second €500 million senior unsecured benchmark issue in 2012

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.

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.”

In conjunction with the bank syndicate DVB decided to benefit from the overall favourable market environment and to issue a no grow benchmark transaction. Books were opened on Thursday, 23 August 2012 at 09:00 a.m. CET. There was strong demand from various investors (175 accounts in total) leading to an oversubscribed, highly granular order book which was closed at 10:15 a.m. CET with a total volume of above €1.2 billion. The final spread was fixed at mid-swaps +150 basis points and pays an annual fixed coupon of 2.50%.

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%. As expected, 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.

Transaction details at a glance:
ISIN: XS0822316765
Issue size: €500 million
Format: senior, unsecured
Maturity date: 30 August 2017
Value date: 30 August 2012
Coupon: 2.5%
Spread: +150 basis points vs. mid-swaps
Joint bookrunners: DZ BANK AG, LBBW and UniCredit