FMS Wertmanagement floats seven-year bond
FMS Wertmanagement on Wednesday floated its third large-volume bond issue for 2012, bringing the government-owned winding-up institution's capital market funding volume to around EUR 19 billion this year alone.
The bond issued on Wednesday has a volume of EUR 3 billion and a maturity of seven years. It was sold to domestic and foreign institutional investors with a coupon of 1.875 percent and at a spread of 94.4 basis points over German government bonds.
"By placing this bond, FMS Wertmanagement has already achieved around 75 percent of its target for 2012," says Ernst-Albrecht Brockhaus, the Executive Board member responsible for funding. "The successful placement in this maturity range impressively shows the enhanced breadth of our investor base."
Citigroup, Deutsche Bank, HSBC and RBS served as lead managers for the bond.
FMS Wertmanagement was established in July 2010 for the purpose of taking over and unwinding the HRE Group's risk positions and non-strategic operations in ways aimed at minimising losses. Favourable funding conditions in the capital markets are key to this endeavour. The Federal Republic of Germany is the sole owner of FMS Wertmanagement via the Financial Market Stabilisation Fund (SoFFin).
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