My Money Group further strengthens its funding profile with the issuance of a EUR 500 million 10 years covered bond

09 September 2019
My Money Group further strengthens its funding profile with the issuance of a EUR 500 million 10 years covered bond

MMB SCF completed today its second covered bonds public issuance following its October 2018 inaugural transaction.

My Money Group raised EUR 500 million of “Obligations Foncières” on a 10-year maturity (soft bullet). These bonds are rated AAA by Standard & Poors and offer a yield of 0.11% p.a. (Mid Swaps + 27 basis points).

 

The book was fully subscribed within one hour of announcement, later reaching close to EUR 1 billion (c. 2x oversubscription). This strong investor demand enabled a spread tightening from the initial 30bps area guidance to a final 27bps spread.

 

With this transaction, My Money Group reaffirms its position as a recurring issuer in the covered bonds space and its desire to continue to expand and diversify its investor base. The order book gathered orders from close to 60 investors (vs. 38 for the 2018 inaugural deal) based mainly in Germany and Austria (36.2%), the Nordics (28.8%), France (17.7%), the United Kingdom (8.5%), Asia (4%) and Spain (2%). It attracted both asset managers (40.4%) and banks (35.2%), central banks (20.2%) and insurers (2.2%).

 

This long-term financing further supports My Money Group’s development of its strategic refinancing mortgage business.

 

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 CRD4 and UCITS compliant.