News

Bankinter successfully places €500 million of mortgage-backed bonds in the wholesale market

This is an extension to the €500 million issue of January 2013, maturing in July 2016.

Yesterday, Bankinter took just a few hours to successfully place €500 million of mortgage-backed bonds with a total of 79 institutional investors, at 172 basis points over mid-swap, representing a significant price reduction compared with the initial indication of 180 bps. Furthermore, the issue price was 37 bps below that of Treasury issues at the same term.

This is an extension to the issue carried out by Bankinter in January this year for the same amount (€500 million) at a price of mid-swap plus 220 basis points. The issue has thus been increased to €1 billion, maturing 26 July 2016.

The issue was twice over-subscribed. Demand from international institutional investors accounted for 78% of the total

Placing banks were Bankinter, Barclays, Natixis and Nomura.

The disbursement date was set at 13 May and the redemption date at 26 July 2016.