press release

Land Berlin has mandated Dexia joint-bookrunner of its first 15-year jumbo bond issue

Dexia Capital Markets has been mandated as joint-bookrunner of Land Berlin's so far longest jumbo "Landesschatzanweisung" (German domestic municipal bond). This is Berlin's (rated Aaa with Fitch and Aa1 with Moody's) longest issue in public form, as well as the first 15-year issue by a German Land since 1998.
"Dexia Capital Markets, recently designated « Municipal Bond House of the Year » by its peers, is proud to prove once more its innovation capacity with this long term benchmark issue", comments Bruno Deletré, Member of the Management Board of the Dexia group in charge of Public Finance.
The 4.250% EUR 750 million issue maturing on April 25th, 2022, was priced at a yield of 4.346%, equivalent to 2 basis points below the EUR swap rate curve, 28 bp over the 10-year BUND 2017 and 17 bp over the OAT maturing in 2021. Secondary market liquidity of this bond will be provided by all syndicate members, bound by strict market making rules. Given its size, liquidity and maturity, this transaction will remain among the leading municipal benchmarks in Europe. ISIN code DE000A0KAV21. Listing Berlin stock exchange.
Reaching longer maturities allows public sector issuers to better match their long-term liabilities with their assets. As such, this transaction allows Berlin to optimise its financing structure, while profiting from historically still low long rates and the flat yield curve.
This transaction was realised with the support of the debt management team of Dexia Kommunalbank in Berlin, the German subsidiary of the Dexia group, whose core business is public sector lending within Germany. Leading world operator on the market for local public sector financing, the Group has branches or subsidiaries in 30 countries. Scale, innovation, know-how and long-term commitment are the keys to Dexia's success in that business line.
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