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60 % placed with American investors Rentenbank issues its largest ever US-Dollar Global Benchmark Bond

16 September 2009

With a volume of $ 2.25 bn., Rentenbank, based in Frankfurt am Main, has successfully placed its largest ever benchmark US Dollar bond. The three-year global bond is the first US Dollar benchmark bond from Rentenbank since May 2008.

In particular, Rentenbank was able to substantially increase its investor base in the USA. 60 % of the volume was taken up by American investors followed by Asian accounts with 22 %, while European investors accounted for an amount of 15 %. As the bank further advised, almost half of the demand was from asset managers followed by central banks with a share of 35 %. Insurance companies, pension funds, banks and other investors accounted for 17 %. The issue was sucessfully diversified over a total of around 90 investors.

„The widely diversified order book, almost reaching a figure of $ 3 bn. was also a record amount underlining the excellent positioning of Rentenbank on the international capital markets. We owe the success of this global bond particularly to our continuing long-term attention to investor relations,“ said Dr. Horst Reinhardt, the member of the Rentenbank Board of Managing Directors responsible for Treasury. He also confirmed that the shortage of Triple A-Papers in the US Dollar market contributed to the success of the Rentenbank bond.  

In addition, Rentenbank profited from a favourable market environment following a US Dollar issue by the Federal Republic of Germany. Rentenbank’s Global Bond matures on September 24, 2012 and has a six monthly coupon of 1.875 %. The re-offer price amounted to 99.791 %.