Inaugural EUR funding deal kick-starts partnership with German DZ Bank
IIB is further consolidating its European investor base with a new EUR deal in the volume of EUR 50 mln, which was organized by the new dealer of the day under MTN Programme - DZ Bank. The transaction, which accommodated interest of three investors in 2-year bond, had again reached a negative yield, further improving IIB’s cost of funds despite the recent volatility and increased interest rate environment.
The placement comes subsequent to a successful non-deal roadshow in European financial centers, including Germany, furthering the Bank’s dialogue with new accounts. Following the deal, the share of German investors reached 13% of overall long term funding, a direct proof of recognition of IIB’s name on the German market and its attractiveness for the investors.
Since the beginning of the year, the Bank had placed over EUR 300 million of bonds with weighted average cost of funds close to zero, one of the reasons for the improvement of the Bank’s financial sustainability metrics and one of the main indicators closely monitored by the rating agencies.
“While we have been historically having the most demand from investors in our Member States, we are very happy and appreciative of the new names we see in our funding, as well as, new partnerships which are a direct outcome of our profound marketing strategy. DZ Bank is one of the largest players on the German market, being a Spitzeninstitut for more than 800 cooperative banks. We are delighted to kick-off our partnership with such a sharp deal, which was executed with excellent speed and ease.” – noted Mr. Jozef Kollár, First Deputy Chairperson of the Management Board.