My Money Group further strengthens its footprint in the covered bond market
My Money Group further strengthens its footprint in the covered bond market with a successful 10-year benchmark transaction.
MMB SCF completed today its third covered bonds public issuance following its 2018 and 2019 transactions, raising €500 million covered bonds on a 10-year maturity (soft bullet).
The bonds are rated AAA by Standard & Poor’s and offer a yield of minus 0.027% p.a. (Mid Swaps + 18 basis points)
Books were opened at 9am, with an indicative pricing of MS + 24bps. The orderbook momentum was very strong from the outset, with cumulative demand exceeding €1bn within 40 minutes, and reaching €2.5bn at 11.30am, with close to 90 investors involved. This strong investor demand enabled a 6bps spread tightening to a final MS + 18bps.
This successful third transaction further establishes My Money Group as a regular covered bonds issuer and reflects its excellent recognition within the covered bond investor community. The order book gathered orders from close to 90 investors based mainly in Germany and Austria (53%), the Nordics (16%), France (15%) and Asia (6%). It attracted both banks (48%) and asset managers (25%), central banks (18%) and insurers (8%).
The covered bonds issued by MMB SCF are backed by a portfolio of mortgage loans granted by My Money Bank in its Refinancing Mortgages franchise. The bonds are listed in Euronext Paris and are fully CRR/CRD IV and UCITS compliant. They are also ECB/CBPP3 eligible as well as LCR Level 1b.