FMS Wertmanagement floats 10-year bond

On Thursday, FMS Wertmanagement, the winding-up institution owned by the German government, successfully floated another public bond with an issuing volume of EUR 1.5 billion and a maturity of ten years. It was sold to domestic and foreign institutional investors with a coupon of three percent and an issue price of 99,642 percent.

"This ten-year bond completes our debt maturity profile as a new issuer", says Ernst-Albrecht Brockhaus, the Executive Board member responsible for funding. "Institutional investors are rewarding the fact that the prices of the bonds we have floated to date have risen". FMS Wertmanagement had no difficulty earlier this year placing two benchmark issues with maturities of three and five years, respectively. Deutsche Bank, Morgan Stanley, Royal Bank of Scotland and UniCredit lead managed the most recent issue.

In August, FMS Wertmanagement was able to exploit institutional investors' demand for investments and carried out a total of eight private placements thanks to the excellent credit ratings it has received from all rating firms. This included six issues in euros with a total volume of EUR 3.61 billion, one bond issue for GBP 200 million and another one for SEK 500 million.

FMS Wertmanagement was established in July 2010 with the aim of taking on the HRE Group's risk positions and non-strategic operations and unwinding them in in ways aimed at minimising the losses. Favourable funding conditions in the capital markets are key to this endeavour. With yesterday's issue, FMS Wertmanagement has achieved a total issuing volume of about EUR 19.8 billion since the start of the year. This means that it has almost reached its stated goal of floating at least EUR 20 billion in bonds this year in early September.

The Federal Republic of Germany is the sole owner of FMS Wertmanagement via by the Financial Market Stabilisation Fund (SoFFin).

If you have any questions, please do not hesitate to contact Andreas Henry, Head of Communications, at +49 89 954 7627 250 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..