Benchmark debut of Sparkasse Pforzheim Calw
Christian Walburg
Association of German Pfandbrief Banks
What is the role-model of the Pfandbrief in your bank?
Stefan Fritz
Sparkasse Pforzheim Calw
The most important source of refinancing for Sparkasse Pforzheim Calw are retail deposits. Refinancing in the capital market supplements these deposits and ensures a flexible and balanced liability structure. Here, the Pfandbrief is the most important instrument for us.
Christian Walburg
Association of German Pfandbrief Banks
What is the footprint of Sparkasse Pforzheim Calw in the Pfandbrief market and when did you first consider issuing in benchmark size?
Stefan Fritz
Sparkasse Pforzheim Calw
Sparkasse Pforzheim Calw is the second largest Pfandbrief issuer among Germany’s savings banks in terms of outstanding Pfandbriefe. With the cover pool increasing to currently around EUR 3 billion and an outstanding Pfandbrief volume of around EUR 2.4 billion, the size necessary to be able to regularly launch benchmark issues has been reached. In the run-up to the tender maturity in June 2023, planning for the first benchmark issue began in the second half of 2022 and we presented Sparkasse as an issuer for the first time at the ECBC conference in Vienna in fall 2022.
Christian Walburg
Association of German Pfandbrief Banks
How did your debut benchmark go?
Stefan Fritz
Sparkasse Pforzheim Calw
With a subscription volume of €1.7 billion, the issue was more than three times oversubscribed. Around one third of demand came from international investors, which once again underlines the very well diversified order book. Driven by high demand, guidance in area of +12 basis points was tightened to a final spread of +8 without losing any orders at all. Also in the secondary market, the bond continued to be in good demand and is currently trading at swap +3 basis points translating to a secondary performance of 5 basis points. The issue thus belongs to the successful transactions in 2023, making us particularly proud.
Christian Walburg
Association of German Pfandbrief Banks
What are your ambitions in the Pfandbrief business - can investors expect regular benchmark issues from Sparkasse Pforzheim Calw in the future?
Stefan Fritz
Sparkasse Pforzheim Calw
We want to regularly visit the market with issues in benchmark and sub-benchmark format. For 2023, we are planning a funding volume of €500 million to €750 million.
Christian Walburg
Association of German Pfandbrief Banks
One last question - what are your company's goals in terms of sustainability?
Stefan Fritz
Sparkasse Pforzheim Calw
We see it as our task to shape a fair and sustainable future for the region. Our goal is to make our operations climate-neutral by 2035. For example, we have committed to the Responsible Jewellery Council’s Code of Practice to ensure business ethics, human rights compliance, fair labor practices, environmental compliance and responsible supply chains in our precious metals products such as the Investment Gold Account. At the same time, we want to promote sustainable business and we support our customers in the upcoming transformation processes by promoting resource efficiency measures and investments in environmental and climate protection. We also offer our customers a wide range of sustainable investment products.