FMS Wertmanagement placed fifth Euro benchmark transaction
FMS Wertmanagement successfully placed its fifth Euro benchmark transaction in 2012. The bond has a volume of EUR 2.5 billion and a maturity of 7 years. Given a coupon of 1.375 per cent the issuance offers a spread to German government bonds of 56 basis points and has been sold to institutional investors, internationally.
This brings the total capital market funding volume achieved this year to around EUR 32 billion.
“This transaction demonstrates the huge investor appetite for low risk issuances especially out of Germany. Given our extensive investor coverage and related market penetration FMS-WM was able to take advantage of this market environment again.” said Ernst-Albrecht Brockhaus, the Executive Board member of FMS Wertmanagement responsible for funding activities.
The bond issue was managed by a syndicate of lead managers comprising BayernLB, Deutsche Bank, HSBC Trinkhaus and UBS.
FMS Wertmanagement was founded in 2010 with the aim of winding up the risk positions and non-strategic operations that were transferred to the company from the Hypo Real Estate Group (HRE Group) effective 1 October 2010. As a financially independent entity under public law, FMS Wertmanagement defines the best possible wind-up strategies in each case and implements them based on the following maxim: Seize opportunities for generating income and minimise losses. FMS Wertmanagement is supervised by Federal Agency for Financial Market Stabilisation (FMSA). The Financial Market Stabilisation Fund SoFFin is obligated without limitation to provide additional funds under Section 8a of the German Law Establishing a Financial Market Stabilisation Fund (Gesetz zur Errichtung eines Finanzmarktstabilisierungsfonds - FMStFG) for losses incurred in winding up the portfolio.
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