FMS Wertmanagement takes advantage of favourable market environment to launch another billion euro issue
FMS Wertmanagement, the winding-up institution owned by the German government, successfully floated its second large-volume bond issue on Wednesday. The issue had a volume of EUR 3 billion. With a maturity of three years and a coupon of 2.25 percent, it was placed with domestic and international institutional investors at an issue price of 99.73 percent.
"We succeeded in using the current favourable market conditions to our advantage", says Ernst-Albrecht Brockhaus, the Executive Board member responsible for funding. "We are very pleased with the outcome of the transaction."
The issue was managed by a banking consortium led by Bayerische Landesbank, Citigroup, Deutsche Bank and Morgan Stanley. Just as the first benchmark issue of FMS Wertmanagement at the end of May, this transaction was oversubscribed as well.
FMS Wertmanagement – which has been given the highest ratings by all rating agencies – was established one year ago under the aegis of the Federal Agency for Financial Market Stabilisation (FMSA) with the aim of taking on the HRE Group's risk positions and non-strategic operations and unwinding them in profit-oriented ways. The Federal Republic of Germany is the sole owner of FMS Wertmanagement via the Financial Market Stabilisation Fund (SoFFin).
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