MBH Mortgage Bank, member of the MBH Group has issued its first international covered mortgage bond. The bond, which matures on February 21, 2031, carries a fixed interest rate of 3.172%.
Nearly 60 institutional investors from 19 European countries participated in the EUR 100 million issue. Demand exceeded the offered volume by a factor of twelve.
The bond was priced at 80 basis points above the international benchmark midswap rate. The proceeds will be used by MBH Mortgage Bank to provide refinancing loans to its partner banks, thereby supporting mainly residential mortgage lending for private customers.
This marks the bank’s fifth institutional mortgage bond issuance this year. Since March 2025, MBH Mortgage Bank has also been offering mortgage bonds directly to retail customers.