FMS Wertmanagement's funding via the capital markets is well above plan
FMS Wertmanagement on Wednesday already floated its second public large-volume bond of 2012. The winding-up institution owned by the German government did so by taking advantage of the currently favourable market environment for issuers with an excellent rating. Overall, FMS Wertmanagement has already managed to raise considerably more than EUR 9 billion on the capital market in 2012, which is well above plan.
The bond issued on Wednesday has a volume of EUR 3 billion and a maturity of five years. It was sold to domestic and foreign institutional investors with a coupon of 1.625 percent and an issue price of 99.84 percent.
"FMS Wertmanagement substantially broadened its investor base with this bond," says Ernst-Albrecht Brockhaus, the Executive Board member responsible for funding. "We benefit from a consistently strong demand for stable and safe investment opportunities." This is reflected in the FMS Wertmanagement's diversified order book. Citigroup, Deutsche Bank, Goldman Sachs and Unicredit served as lead managers for this 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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