OLB Launches First German RMBS Since Over a Decade

Oldenburgische Landesbank AG (OLB) successfully placed EUR 250 million of Residential Mortgage-Backed Securities (RMBS) with external investors. This marks the first such transaction in Germany in over ten years. The bank's securitisation platform, Weser Funding S.A., facilitated this initiative. The notes are underpinned by German residential mortgages, aiming to diversify OLB's funding alongside Pfandbriefe and Dutch RMBS transactions.

Transaction specifics reveal a spread of 62 basis points above the 3-month EURIBOR and a weighted average life of four years. The issuance is rated AAA by Moody's and Fitch. UniCredit and CIC acted as joint lead managers. OLB's CFO, Michael Fust, highlighted the reopening of this market segment as a vital step in enhancing the bank's funding efficiency and supporting its growth strategies following acquisition by TARGO Deutschland GmbH.