Bankinter Places €1,000m in 1.1% Mortgage Bonds

28 January 2015 – Expansión

Bankinter did not want to pass up the opportunity to obtain financing in market conditions never seen before, thanks to assistance from the European Central Bank, and so yesterday it placed €1,000 million of mortgage bonds with a yield of 1.1%, 38 basis points above the mid-swap rate.

The entity has not conducted an issue of this type of debt since May 2013, when it placed €1,300 million of floating rate securities. Then it paid a spread of 250 basis points over Euribor (the reference rate for floating-rate issues).

These bonds were placed to more than 80 institutional investors in a little over two hours. The placement with international institutional investors accounted for 88.5% of the total amount.

The disbursement date is 5 February and the repayment date will be 5 February 2025. The issue was over-subscribed by 1.8x.

Bankinter engaged Barclays, HSBC, JP Morgan and Santander to conduct this 10-year mortgage bond issue.

In September last year, the ECB launched its third bond-purchase program to try and revive credit. Since then, Santander, Sabadell and BBVA have all completed secured bond placements.

Original story: Expansión (by Daniel Badía)

Translation: Carmel Drake

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